Government records worst primary result for February – 03/26/2024 – Market

The central government recorded a primary deficit of R$58.4 billion in February, the worst balance for the month in the historical series that began in 1997, the National Treasury reported this Tuesday.

The month’s deficit, made up of the results of the National Treasury, Central Bank and Social Security, is 37.7% greater than the negative balance of R$40.6 billion observed in the same month last year.

According to the Treasury, the February deficit is the result of a real increase of 27.4% in total expenditure, which reached R$190.9 billion, while net revenue — which excludes transfers to regional governments — grew. real of 23.4%, to R$ 132.4 billion.

“The real increase in total expenses can be explained mainly by the payment of court orders in the amount of R$30.1 billion, the Treasury said in a note.

With this month’s data, the central government’s primary result accumulated over 12 months was a deficit of 252.9 billion reais in a value adjusted for inflation, equivalent to 2.26% of the Gross Domestic Product (GDP).

In the first two months, the central government accumulated a surplus of 20.941 billion reais, compared to a positive balance of 38.292 billion reais in the same period in 2023.

Treasury Secretary Rogério Ceron said that the result was impacted by an atypical data, as the government brought forward the payment of court orders to last month.

In a press conference after the release, Ceron said that, generally, precatório payments take place in May or June, so that the anticipation to February distorted the basis of comparison.