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Published on 04/11/2016
Published on 11/19/2015
Brazil's Budget Deficit Hits a Record in July
08/30/2017 - 09h44
The government's primary deficit was the worst in history for both July and the first two quarters.
Figures released by the National Treasury on Tuesday (29) show that expenses exceeded revenues by R$ 20.1 billion (US$ 6.25 billion) last month, which led to a loss of R$ 76.2 billion (US$ 23.8 billion) from January to July.
In the 12-month period, the deficit is R$ 183.7 billion (US$ 57 billion) - that is, R$ 24.7 billion (US$ 7.8 billion) above the new, looser fiscal target of R$ 159 billion (US$ 49 billion).
The increase in Social Security and staff expenses explains part of this picture. In the year, these expenses increased by 6.9% and 10.9%, respectively.
The negative result also has to do with new revenue frustration last month.
Only last month, revenue from the Federal Revenue Service was R$ 6 billion (US$ 1.8 billion) below expectations, which was mainly influenced by the low adhesion to the repatriation of funds abroad (R$ 1.4 billion -US$ 437 million- in frustration of revenues) and R$ 4.7 billion (US$ 1.4 billion) less in the collection of corporate income tax.
The 12-month period deficit is particularly high also because the government anticipated in May and June the payment of court-issued registered warrants (payments determined by court decisions) that are normally paid at the end of the year.
Translated by MARINA DELLA VALLE