Brazil’s central government posts a better-than-expected surplus of 28.6 billion reais in April

BRASILIA (Reuters) – Brazil’s central government reported a better-than-expected primary budget surplus of 28.6 billion reais ($5.57 billion) in April, official figures showed on Tuesday, as tax revenue increased helping to improve fiscal data.

Economic analysts expected a surplus of 26.4 billion reais in a Reuters poll.

According to the Treasury, net central government revenue increased by 5.9% in real terms compared to the same month last year, while total expenditure decreased by 0.5% on the same basis.

Tax revenues have been boosted by an increase in income tax and oil royalties, at a time when international prices remain under pressure due to the Russian invasion of Ukraine.

Since the beginning of the year, the central government has recorded a primary surplus of 79.3 billion reais, up 75.1% compared to the same period in 2021 in inflation-adjusted data.

In the 12 months to April, the primary deficit reached 4.6 billion reais, or 0.06 percent of gross domestic product, the Treasury said.

The figures were expected by the end of May but were delayed by a protest by Treasury workers for higher wages.

The central bank said last month that the public sector, including states, municipalities and public enterprises, posted a primary surplus of 38.9 billion reais in April.

(Reporting by Marcela Ayres; Editing by Chris Reese and Grant McCool)

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