Debt in public accounts slowed down in September compared to August; gross debt falls to 78.3% of GDP
The consolidated public sector – made up of the Union, States, municipalities and state-owned companies – recorded a nominal deficit above R$1 trillion for 6 consecutive months. In the 12 months up to September, the negative balance in public accounts was R$1.065 trillion. The (Central Bank) released the report “Tax Statistics” this Monday (11.Nov.2024). Here is the document (PDF – 242 kB).
Unlike the primary result of public accounts, the nominal result includes the payment of interest on the debt in the balance of income and expenses. The basic rate, the Selic, stops at 11.25% per year on Wednesday (Nov 6), which tends to put pressure on interest expenses and increase public debt.
Read the trajectory of the nominal deficit of the consolidated public sector over the last 12 months:
September data shows a slowdown in Brazil’s deficit for the 2nd consecutive month in the 12-month period.
Debt interest expenses decreased over the last 12 months. They fell from R$855.0 billion in August to R$819.7 billion in September.
PRIMARY DEFICIT
When excluding debt interest payments, the balance of public accounts was negative by R$245.6 billion in the 12 months up to September. The primary deficit fell in relation to that recorded in August, of . The negative balance in public accounts represents 2.15% of GDP (Gross Domestic Product).
In September, the consolidated public sector recorded a deficit of R$7.3 billion. The central government (federal government and Central Bank) had a primary deficit of R$4.0 billion. Regional governments (States and municipalities) recorded a negative balance of R$3.2 billion. State-owned companies had a deficit of R$192 million.
GROSS DEBT
The DBGG (Gross General Government Debt) – formed by the federal government, INSS and regional governments – was 78.3% of GDP in September. It fell 0.2 percentage points in the month. In the year, it grew 3.8 percentage points. In nominal values, it corresponds to R$8.9 trillion.
Gross debt rose 6.6 percentage points in the government (PT).
EXPENDITURE REVIEW
The economic team is studying reviewing expenses with the BPC (Continuous Payment Benefit), Fundeb (Fund for Maintenance and Development of Basic Education and Valorization of Education Professionals), unemployment insurance and salary bonus. Read the infographics that show the evolution of expenses in recent years.
The Minister of Finance, on Monday (4.Nov.2024) that the set of measures to reduce the trajectory of public expenditure should be released last week. The spending review package.
For financial agents, the measures are necessary to provide sustainability to the fiscal framework – the law that replaced the spending ceiling in 2023. Market estimates indicate that the federal government will not meet the targets in 2024, 2025, 2026 and 2027.
