Expenses rose R$101.4 billion compared to the same period in 2024; revenues increased by R$94.2 billion
The record net revenue has not been enough to overcome total government expenditure (PT). Federal public spending (excluding interest payments) increased by R$101.4 billion from January to September compared to the same period in 2023. Net revenue grew by R$94.2 billion in the same period of time.
The data are from the National Treasury and have been adjusted for inflation. The government’s net revenue excludes transfers made to states and municipalities. It is used to calculate the government’s primary result.
From January to September, net revenue totaled R$1.57 trillion. It is a record in the historical series, which began in 1997. In percentage terms, it grew 6.4% compared to January to September 2023. The problem is that public spending rose 6.5% in the same period.
PUBLIC ACCOUNTS
The federal government’s primary deficit of R$ 105.2 billion from January to September 2024. The deficit in public accounts increased compared to the same period in 2023, when it totaled R$97.73 billion. It had real growth of 7.4%.
In another analysis, the hole in public accounts was not greater because net revenue registered a record value.
The IRS disclosed that, from January to September, the government’s federal revenue since the beginning of the historical series, which began in 1995.
Of the R$101.4 billion more spent in 2024, R$24.5 billion was spent on social security benefits alone.
They corresponded to 24.2% of the entire increase in expenses in 2024. Possible government targets in the spending cut package that is about to be announced, Fundeb (Fund for Maintenance and Development of Basic Education and Valorization of Education Professionals) , the salary bonus and unemployment insurance grew by R$22.4 billion in 2024 compared to 2023.
EXPENDITURE REVIEW
Data from the National Treasury highlight the need to curb public expenditure, especially mandatory spending. The economic team is studying reviewing expenses with the BPC (Continuous Payment Benefit), Fundeb, 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.
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