Secretary of the National Treasury states that the government is executing 1/18 expenses of expenses; Budget has not yet been voted
The National Treasury Secretary, Rogério Ceron, said on Thursday (30.Jan.2025) that the government is executing 1/18 expenses in early 2025. He also said that the economic team has to “Be cautious about payment anticipations”.
On January 7, the president’s government (PT) tightened the execution of public expenses in early 2025. According to the Poder360the evaluation of part of the economic team was that it would be a “Good signage” e “healthy” As for the fiscal part.
Congress has not yet voted for the 2025 budget piece. In these cases, the executive only has a monthly twelfth (1/12) of the amount he has to fund the public machine. This Standard is in the Budgetary Guidelines Law (LDO) and prevents the paralysis of the Union’s public services, since the rule ensures the payment of expenses such as salaries, social charges and debt.
The Treasury initially counted on the execution of the twelfth, as this digital newspaper learns. This Thursday (30.Jan), Ceron said there was a legal provision for the option to pay 1/18 grandparents.
The secretary also signaled that the government discusses adjustments in the budget bill. The measures are defined by Jeo (budget execution board), which met on Wednesday (29.jan).
The group is a space reserved for the discussion of fiscal policy with authorities, especially ministers and executive secretaries. Here’s the members:
The secretary spoke about the subject by commenting on the government’s accounts in 2024, which R $ 11.0 billion by disregarding the expenses with the reconstruction of Rio Grande do Sul. The result is equivalent to 0.09% of GDP (Gross Domestic Product). This is the amount considered for the fulfillment of the tax framework.
When taking into account spending on the state, the negative balance was R $ 43.0 billion (or 0.36% of GDP) in nominal terms. When considering inflation, the deficit goes to $ 44 billion, according to the National Treasury. In practice, it represents a real fall – decounting inflation – 81.7% compared to 2023, when the break was R $ 239.9 billion.
The report released the report on Thursday (30.Jan.2025). Here’s (PDF – 948 KB) of the presentation.
Read the trajectory of government accounts from 2013 to 2024, in amounts corrected by inflation:
The primary result corresponds to the subtraction between income and expenses without counting the payment of debt interest. Central government accounts include National Treasury, Social Security and Central Bank.
This is the result according to each organ:
- National Treasure – R $ 255.6 billion surplus;
- Banco Central – R $ 1.2 billion deficit;
- Social Security – R $ 297.4 billion deficit.
There is an inter0.25 pp (percentage point) tolerance from GDP to primary balance. The government could spend up to $ 28.8 billion more than revenues in 2024. The goal itself is zero deficit, but there is this margin of tolerance.
On January 7, the Minister of Finance, (PT), that the primary deficit of the Federal Government’s public accounts would be 0.1% of GDP in 2024. It does not include the costs of the reconstruction of Rio Grande do Sul.
Deficit level
Ceron that the deficit is in “one of the best levels of the decade ”. Said, however, there is a challenge “Very big” As for the tax issue.
“There are questions that strongly affect the revenue base”he added.
Accounts in December
In December 2024, government accounts registered primary surplus of R $ 24.0 billion. The result exceeds the one obtained in the same month in 2023, when there was a deficit of R $ 121.6 billion when considering inflation.
This is the result according to each organ:
- National Treasure – surplus of R $ 13.7 billion;
- Banco Central – R $ 58 million deficit;
- Social Security – Superavit of R $ 10.4 billion.
