NEWS IN ENGLISH – Higher revenue brought about second highest ever primary surplus in January

allen — Thu, 31 Mar 2011 14:00:32 +0000

Wellton Máximo Reporter Agência Brasil

Brasília – The month of January 2011 was a good one for the primary account [the primary account is an accounting tool. It measures the performance of a part of the government without including a part of government outlays: financial operations in the so-called Central Government (National Treasury, Social Security system and Central Bank) are calculated less interest payments. In fact, what the primary surplus is supposed to be is money economized to pay interest] . The January primary surplus of R$14.097 billion was the second highest ever for the month. It was an increase of R$228.6 million over the surplus in January 2010, and just slightly less than the record January surplus in 2008, when it was R$15.362 billion.

The cumulative primary account surplus for the last twelve months is now at R$79.2 billion, or 2.15% of GDP. For the sake of comparison, in January 2010, the cumulative 12-month primary surplus was R$49.3 billion, or 1.53% of GDP.

The January 2011 primary surplus was primarily the result of a spike in government revenue, even though spending increased. Net government revenue in January rose 19.1%, while outlays were up 24%, compared to January 2010. Payroll expenditures were up 10.5% and operational costs (“custeio”) rose 35.3%. However, the largest increase was in discretionary spending (“investimentos”), which jumped 85.3% to R$5.299 billion.

Spending on the Accelerated Growth Program (“PAC”) in January 2011 totaled R$2.949 billion, an increase of no less than 176%, compared to January 2010.

Allen Bennett – translator/editor The News in English

Link - Aumento da arrecadação garante segundo melhor superávit primário da história em janeiro

NEWS IN ENGLISH – Government expects to reach primary surplus target

allen — Thu, 31 Mar 2011 13:55:50 +0000

Luciene Cruz Reporter Agência Brasil

Brasília – With the recently announced R$50 billion budget cut (“Orçamento Geral da União”), the government intends to reduce total outlays in 2011 from R$769.9 billion to R$719.9 billion. The objective is to maintain the primary account (revenue minus outlays in the Central Government, without including interest payments) under control and obtain a primary surplus of R$81.8 billion, or 2.9% of GDP. Suffice it to say that the primary surplus is the highlight of the government’s fiscal efforts to pay off the country’s debt.

The government growth target for 2011 is an increase of 5% in GDP.

As for revenue, the government has revised its estimates downward from R$819 billion to R$801.7 billion.

Minister of Finance, Guido Mantega, sums up the latest government economic forecasts saying they are “…more realistic than at any other time.”

Allen Bennett – translator/editor The News in English

Link - Governo prevê cumprimento da meta de superávit primário e queda na arrecadação