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Economic Recovery Has Positively Impacted Government Finances through Tax Revenues
11/13/2017 - 11h57
FROM SAO PAULO
The indicators may not be jaw-dropping but they are consistent: economic recovery has positively impacted tax revenues. The assertion is backed by tax results that are contingent on economic recovery, such as the IPI, a tax that is levied on manufactured goods.
That is what the Independent Fiscal Institute (IFI) concluded in its Fiscal Accompaniment Report, obtained by Folha and scheduled to be released on Monday (the 13th).
In absolute terms, when considered up until September, federal revenues that are tied to economic activity went up to R$ 785.8 billion (US$ 238.8 billion). That's an R$ 8.3 billion increase (US$ 2.5 billion) when compared to the same period last year.
As far as atypical (or "non-recurring") revenues go, results up until September of 2017 reached R$ 38.4 billion (US$ 11.7 billion), or 6.6 billion (US$ 2 billion) less than the amount obtained during the same period last year: R$ 45 billion (US$ 13.7 billion).
Ever since July, the upward trend in terms of tax revenues seems to have persisted, a reflection of the country's gradual economic recovery.
However, such recurring revenues have not been enough to counter government spending, which has continued to increase in 2017, meaning the government will continue to rely on atypical revenues in order to tackle the deficit.
Government spending up until September reached R$ 933 billion (US$ 283.6 billion), an increase when compared to results obtained for the same period last year: R$ 927 billion (US$ 281.7).
Translated by THOMAS MATHEWSON