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Brazil's government projects primary surplus of $2.6 billion in 2022, first in nine years

Brasilia (Reuters) – Brazil’s government estimated on Thursday that it will post a primary surplus this year for self-owned companies.

Ministry of Economy forecast 25. 548 According to Reuters on Wednesday, the central government’s main budget surplus is 1 billion reais (2.63 million US dollars), including the Brazilian Ministry of Finance, the Central Bank and the Social Security Institute.

This figure is in stark contrast to the main deficit of 59. 69 1 billion reais in July and 170 500 million reais official deficit target 170.

Compared to the one just calculated two months ago, the government has raised the estimated net income for the current year by 25 900 million reais, estimated Taxes will be stronger and 25 600 million reais in dividends.

The dividend was largely driven by state-owned oil company Petrobras, whose profits soared as oil prices rose after the Ukraine war.

Economy Minister Paulo Guedes believes that income growth is not only a response to soaring commodities but also government reforms that have lowered unemployment and attracted more private investment.

The government also announced in the report that an additional 2.6 billion reais in spending would need to be frozen to comply with regulations and constitutional spending caps.

Details of the cuts will be formalized at the end of the month, adding to pressure on the laggard President Bolsonaro ahead of the Oct. 2 vote. Run for left-wing opponent Luis Inacio Lula da Silva.

($1=5.1437 reais)



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