Government accounts have a gap of R$58.4 billion in February, the worst result for the month in 28 years

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The deficit in public accounts was influenced by the payment of R$30 billion in court orders. In the first two months, accounts had a positive balance of R$20.9 billion. The National Treasury Secretariat reported this Tuesday (26) that the federal government’s accounts recorded a primary deficit of R$58.44 billion in February this year. The primary deficit occurs when revenues from taxes and duties fall below government expenditures (expenses related to paying interest on public debt are not considered). If revenues exceed expenses, the result is a primary surplus. According to the government, the deficit recorded in February is the largest for the month since the beginning of the historical series in 1997. Therefore, it is the worst result for that month in 28 years. The values ​​were adjusted for inflation. The weak result of the government’s accounts in February occurred despite the good performance of revenue — which totaled R$186.5 billion, a historic record for the period. According to the National Treasury, however, February’s numbers were also impacted by the payment of R$30 billion in court orders (amounts that the government owes to an individual or legal entity and that must be paid after court decisions). The result was announced at a press conference held by the National Treasury Secretariat this Tuesday (26). Partial Reproduction of the year and fiscal target According to the National Treasury, in the first two months of this year, the government’s accounts recorded a primary surplus of R$20.94 billion. As a result, there was a worsening compared to the same period last year, when a fiscal surplus of R$38.29 billion was recorded in the government’s accounts. The government reported that it seeks to eliminate the deficit in public accounts this year, a goal contained in the Budget Guidelines Law (LDO) — approved by the National Congress and sanctioned by President Luiz Inácio Lula da Silva (PT). In 2023, the federal government recorded a primary deficit (not counting interest expenses) of R$230.5 billion. It was the second worst result in the historical series. The objective of closing the fiscal gap this year is considered bold by the financial market, which projects a deficit of around R$80 billion for 2024. According to the revenue and expenditure assessment report released last week, however, the accounts of the government are expected to record a deficit of R$9.3 billion this year. According to the rules of the fiscal framework, there is a band of 0.25 percentage points of GDP above and below the fiscal target. With this, the government can record a deficit of up to R$28.8 billion in 2024 without the objective being missed. In pursuit of the fiscal target, last year the government approved a series of measures to increase federal revenue. The objective is to increase revenue by R$168.5 billion in 2024.

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