Brazilian government cuts 2021 primary deficit forecasts

Brazilian government cuts 2021 primary deficit forecasts
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Improvements to the government’s primary results in 2021 have led Brazil’s Economy Ministry to reduce its primary deficit forecasts for this year, down to BRL 139.4 billion (USD 26.23 billion), according to a report released this afternoon.

Were this projection to hold, the deficit would account for 1.6 percent of Brazil’s GDP, less than the 1.8 percent forecast two months ago. Meanwhile, expected revenue increased by BRL 15.5 billion, to BRL 1.6 trillion.

While presenting the department’s latest findings, special treasury and budget secretary Bruno Funchal said the results show the “importance of measures to combat the pandemic and the relevance of the federal spending cap, which allows us to control our current expenses each year with a drop in expenses proportional to GDP.”

“With expenditure under control, increased revenue translates into better results,” he added.