Brazil’s public accounts record slim Q1 surplus

The accounts of federal, state, and municipal governments, plus those of state-owned companies, recorded a primary surplus of BRL 1.18 billion (about USD 232 million) in March, the Central Bank reported. In Q1 2024, they accumulated a primary surplus of BRL 54.63 billion. 

The number was above market expectations, which had predicted a deficit of around BRL 1.70 billion in March, according to research by Estadão Broadcast. On the other hand, the government’s gross debt reached BRL 8.3 trillion in March, or 75.7 percent of GDP. This is the highest level since April 2022 — when it reached 76.33 percent — and means an increase of 0.2 points from the previous month.

State governments’ results drove the positive primary surplus results. Conversely, the federal government posted a deficit of BRL 1.90 billion, as did state-owned companies (BRL 343 million) — Petrobras and Eletrobras excluded.

Considering the payment of interest on public debt, the consolidated public sector recorded a deficit of BRL 63 billion in March. In the 12 months, the nominal deficit reached BRL 998.6 billion, or 9.06 percent of GDP.

The Central Bank attributed the increase in public debt to the effect caused by appropriate nominal interest rates, which rose 0.6 percentage points in March, and also to the reductions of 0.2 percentage points in both the net debt redemption and the variation in nominal GDP.

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