Brazil's Treasury Reports R$ 1.6 Billion Fiscal Debt in First Half of 2015

07/31/2015 - 10h05

Brazil's federal government has accumulated a primary budget deficit of US$ 474 million (R$ 1.6 billion) in the first half of the year.
 
It is its first negative balance for the period since 1997, when the deficit/surplus indicator was first used.
 
Only in June the deficit reached US$ 2.4 billion (R$ 8.2 billion), as reported by the Treasury on Thursday (30).
 
"The result is still very negative, so the government is taking the measures it deems necessary," said Treasury Secretary Marcelo Saintive, mentioning the US$ 2.55 billion (R$ 8.6 billion) budget cut.
 
In June, there was a 2.44% fall in tax collection (inflation adjusted) in comparison with the same period last year.
 
If other incomes are considered, such as concessions and dividends of state-owned companies, there was a 3.3% drop in the first half.

Expenses, on the other hand, increased by 0.5% in the same period, especially the payment of social security benefits (3.8%).
 
In the first half of 2014, the central government recorded a surplus of US$ 5.14 billion (R$ 18.1 billion).

Translated by JULIANA CALDERARI

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	Sérgio Lima/Folhapress
	Brazil's Treasury Secretary Marcelo Saintive