Clipping of news on Brazilian Culture, Law and Citizenship
12/03/2012
This article was translated by an automatic translation system, and was therefore not reviewed by people.
Kelly Oliveira *
Brazil Agency Reporter
Brasilia - The primary surplus, effort for the payment of debt interest, the consolidated public sector - federal, state and municipal governments and state companies - reached R$ 12.398 billion in October, according to data from the Central Bank (BC), released today (30). In the same period of 2011, the result was R$ 13.936 billion, and in September this year at R$ 1.591 billion.
From January to October, the primary surplus was R $ 88.214 billion, compared to R$ 118.572 billion in the same period last year. In the 12 months ending in October, the result was R$ 98.352 billion, representing 2.25% of everything the country produces - Gross Domestic Product (GDP).
On Apr. 20, the government announced the reduction of R$ 25.6 billion of primary surplus, which fell from R$ 139.8 billion to R$ 114.2 billion the volume to be saved by the Union, the states and municipalities this year.
The rebate was only possible because the Budget Guidelines Law (LDO) that authorizes spending Acceleration Program (PAC) are used to reduce the tax effort goal. However, the final volume being slaughtered may be greater if states and municipalities do not reach a savings goal. In this case, the federal government will have to further reduce the tax effort to compensate for the non saved by municipalities and state governments.
In October, states and municipalities have primary surplus of R$ 2.412 billion and the ten months of the year saved R$ 22.913 billion. In the 12 months ending in October, the regional government primary surplus was R$ 25.029 billion. The projection of the primary surplus to local governments and state governments this year is R$ 42.8 billion.
In the assessment of the head of the Economic Department of BC, Tulio Maciel, states and munícios "had relatively modest fiscal performance" this year. According to Maciel, this occurred because governments are more sensitive to the slowdown in economic activity and, therefore, had less collection of Tax on Circulation of Goods and Services (ICMS). Therefore, Maciel believes there is a risk that states and municipalities do not reach the estimate for this year.
The Central Government (Central Bank, National Treasury and Social Security) registered a primary surplus of R$ 10.061 billion in October, and R $ 64.060 billion in the ten months of the year. In the 12 months ending in October, the primary surplus was R$ 71.371 billion.
Parastatals, excluded groups Petrobras and Eletrobras, recorded a primary deficit of R$ 75 million in October. In the ten months of the year, the company recorded a primary surplus of R$ 1.240 billion and 12 months ended in October of R$ 1.952 billion.
The public sector fiscal effort was not enough to cover the expenses with the interest levied on the debt. This interest reached R$ 17.005 billion in October, and totaled R$ 178.430 billion in the ten months of the year, compared to R$ 20.258 billion and R$ 197.732 billion, respectively in the same periods of 2011.
Thus, the nominal deficit, formed by the primary outcome and interest expenses, was R$ 4.607 billion last month, and R$ 90.215 billion from January to October. In October last year, the nominal deficit stood at R$ 6.322 billion, and in the ten months of 2011 to R$ 79.159 billion.
Source: Agency Brazil
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This article was translated by an automatic translation system, and was therefore not reviewed by people.