Primary result has the highest accumulated surplus in relation to GDP in 10 years

Data released this Wednesday (31), by the Fiscal Statistics note of the Central Bank of Brazil (BCB), the general government – federal, state and municipal governments – recorded an accumulated surplus of R$ 230 billion in the last twelve months, representing 2.48% of GDP.

This is the best result accumulated in twelve months, for a month of July, since 2012, when the accumulated surplus reached 2.53% of GDP. At the time, the accumulated value was R$ 108 billion.

In July 2022, the Brazilian consolidated public sector recorded a primary surplus of R$20.4 billion, compared to a deficit of R$10.3 billion in July 2021. In the Central Government and regional governments, there were surpluses of R$20 .0 billion and R$1.8 billion, respectively. While in state-owned companies, there was a deficit of R$1.3 billion in the month.

The General Government Gross Debt (DBGG) fell to 77.6% of GDP, reaching R$ 7.2 trillion in July 2022. The DBGG comprises the expenses of the Federal Government, INSS and state and municipal governments. This is the lowest level of the debt since March 2020, when the Covid-19 pandemic was declared by the World Health Organization (WHO).

With the reduction of 0.4 percentage points recorded in GDP, the public debt accumulates a drop of 2.7 pp of GDP, only in 2022. According to the BC note, the “evolution was mainly due to the effect of GDP growth (0.9 pp decrease), net debt redemptions (0.1 pp decrease), and appropriate nominal interest (0.6 pp increase).”.

Nominal interest in the consolidated public sector totaled R$42.9 billion in July 2022, compared to R$45.1 billion in July 2021. In the twelve-month period up to July, nominal interest totaled R$586.4 billion (6 .31% of GDP). In the twelve months through July 2021, interest totaled R$323.5 billion (3.94% of GDP).