Debt-GDP ratio reached 80.1% of GDP in March, with an increase of 1.4 pp in the quarter and 8.7 pp during the Lula government
Brazil’s gross debt exceeded 80% of Gross Domestic Product for the first time since the covid-19 pandemic. In March, DBGG (Gross General Government Debt) reached 80.1% of GDP, the highest level since July 2021. The monetary authority released the data this Thursday (April 30, 2026). Here is the statement (PDF – 396 kB).
The debt-GDP ratio rose 1.4 percentage points in the year to date, from December to March. In the government (PT), the increase was 8.7 percentage points.
The highest debt level was in October 2020, when it reached 87.7% of GDP, during the covid-19 pandemic. The increase in debt is related to spending by the federal government and states to mitigate the effects of the health crisis on the economy.
Over a 12-month period, the consolidated public sector – made up of the Union, States, municipalities and State-owned companies – had a primary deficit of R$661.8 billion in October 2020. The basic rate, the Selic, was at 2% per year in the month, which slowed spending on debt interest.
The annualized primary deficit was R$137.1 billion in March this year, but interest expenses have been under pressure with the higher Selic. Debt interest expenses hit a record for the month, at R$1.08 trillion.
DEBT
DBGG comprises the federal government, the INSS (National Social Security Institute) and state and municipal governments. According to the Central Bank, the debt rose to R$10.4 trillion in nominal values in March.
The debt-GDP ratio increased 0.9 percentage points in the month compared to February. The monetary authority said that the increase was due to the following factors:
- nominal interest expenses (+0.9 pp);
- net debt issuance (+0.4 pp);
- effect of exchange rate devaluation (+0.1 pp);
- variation in nominal GDP (-0.5 pp).
The Central Bank said that, in the year, the increase of 1.4 percentage points was justified by the following items:
- nominal interest expenses (+2.4 pp);
- net debt issues (+0.4 pp);
- nominal GDP growth (-1.2 pp);
- effect of exchange rate appreciation (-0.2 pp).
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