The secretary of the National Treasury, Paulo Valle, believes that 2021 may end with public accounts in the blue, after seven consecutive years of fiscal breach. According to him, if a surplus is not registered, the deficit should be the smallest since 2014.
“Since there is only one month until the end of the year, our estimate is that there is a great possibility that we will have the first surplus in the public sector, considering the states and municipalities, since 2013,” he said at a press conference this Wednesday (29).
Since 2014, Brazilian public accounts have registered a primary deficit, which is when government revenues do not cover public spending. The record was set in 2020, when extraordinary expenses from the Covid-19 pandemic pushed the fiscal hole to R$743 billion.
The secretary’s calculation for the 2021 result takes into account a deficit of BRL 70 billion for the Central Government, with a surplus in the accounts of states and municipalities.
“When we look from January to November, we have a deficit of R$49 billion. If in December it is BRL 70 billion from the Central Government and states with BRL 75 billion in surplus, we are talking about a primary surplus of BRL 5 billion in the public sector (Federal Government, regional and state governments)”, he explained.
Valle stated that despite the economic recovery, 2022 will be a year with “a lot of challenges” for the Brazilian economy. “But we understand that we are well positioned to face the year, which will not be a calm one. Well positioned especially in public debt”
Reference: CNN Brasil
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