Balance combines the accounts of the National Treasury, Social Security and the Central Bank
The accounts of federal government closed in the red at R$14.7 billion in November, according to data from the National treasure released this Wednesday, 28.
The balance – which includes National Treasury accounts, social Security and Central bank – was the month’s worst performance since 2020, when there was a deficit of R$21.411 billion, when adjusted for inflation. In November 2021, the result was positive for 4.435 billion reais, already discounted inflation.
Last month’s deficit was higher than the expectations of the financial market, whose median indicated a deficit of 13.750 billion reais, according to a survey by the Radio and television projections with 16 financial institutions.
In the cumulative result of the year, the primary result recorded a surplus of R$ 49.297 billion, the best result since 2013. In the same period last year, this same result was negative by R$ 54.458 billion.
In November, revenues recorded a real drop of 9.4% compared to the same month last year. The cumulative result for the year shows an increase of 9.4%. Spending rose 4.6% in November, after pricing in inflation. In the cumulative 2022 the change was positive by 2.5%.
In the 12 months to November, the federal government has a surplus of R$ 66.5 billion – equal to 0.77% of the GDP. The fiscal target for this year admits a deficit of up to 170.5 billion reais in central government accounts, but the economic team expects to end the year with a surplus of 36.9 billion reais, according to the estimate magazine today. However, Treasury Secretary Paulo Valle said it would not be a “surprise” if the accounts closed in surplus above R$50 billion.
For 2023, Valle said the economic team expects an increase in revenues of 36 billion reais in 2023 compared to the estimate sent in the budget proposal approved last week, as advanced by the Stadium.
“We had above-average revenue this year,” Valle said, citing high oil prices. “We already have more optimistic numbers for next year that the Internal Revenue Service has sent to Congress, but it ended up not being considered in the Budget.”
Instead, the Treasury secretary recalled the proposals approved in Congress, such as the increase in the number of employees in the Legislative and Judiciary and the nursing plan. “The nursing plan and other points will impact spending in 2023.”
Moreover, despite the increase in revenues, Valle argued that the new government will have to define priorities, citing the issue of fuel taxation.
Federal taxes on these products are zero, but the policy will end later this year. The current government has even suggested extending the exemption, but future finance minister Fernando Haddad said he had asked the economic team to refrain from taking steps that would impact the new government.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
