Brazil Government Posts R$ 21.3 Billion Deficit in November

12/29/2015 - 09h52

Brazil's federal government registered in November a R$ 21.3 billion (US$ 5.52 billion) deficit. It is the biggest monthly deficit ever recorded by the National Treasury in current values (without inflation correction).

In the year, it has amassed a deficit of R$ 54.3 billion (US$ 14.07 bn), equivalent to 1% of GDP and the triple registered in the same period of the previous year (R$ 18.3 bn or US$ 4.74 bn).

In the period, the government revenues fell by 6.8% (inflation discounted), while expenditures fell by 3.4%.

As the government has decided that it will pay this year all the debt from transfer delays from the Treasury to public banks worth R$ 57 billion (US$ 14.78 bn), the public finances will end 2015 in R$ 120 billion (US$ 31.10 bn) deficit.

In the first meeting with the new economic team–after replacing Finance Minister Joaquim Levy–, President Dilma Rousseff discussed the adoption of measures to create "paths to development" and to ensure the rebalancing of public finances.

Folha has learnt that Rousseff asked new Finance Minister Nelson Barbosa and Planning Minister Valdir Simão for actions to increase investments in the country's economy, to encourage the demand with credit supply and to lead the federal government back to primary surplus.

Translated by JULIANA CALDERARI

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