UPDATE 3-Brazil posts record Jan primary budget surplus

(Recasts; adds central bank comments, 2008 budget)

BRASILIA, Feb 27 (Reuters) - Brazil's consolidated primary budget surplus rose to the highest on record for the month of January, lifted by a surge in tax revenue, but the central bank said on Wednesday the "exceptional" results are unlikely to last long.

The surplus reached 18.66 billion reais ($11.1 billion) BRPSPS=ECI, the largest for January since the government started tracking the data in 1991. The result, which beat all forecasts, compared with a primary surplus of 13.46 billion reais in the same month in 2007 and a deficit of 11.78 billion reais in December.

"This shouldn't be the pattern" for the rest of the year, said Altamir Lopes, head of economic research at the central bank.

President Luiz Inacio Lula da Silva's administration has not yet approved the 2008 budget, putting a cap on government spending that helped lift the primary surplus in January, Lopes said. Spending on infrastructure and social programs should rise throughout the year and push the primary surplus lower, he said.

The government was expected to post a primary surplus of 12.15 billion reais, according to the median estimate of 14 economists surveyed by Reuters. Estimates for the surplus ranged from 9.9 billion reais to 14.2 billion reais.

In the 12 months through January, Brazil posted a primary budget surplus equal to 4.15 percent of gross domestic product compared with 3.98 percent of GDP in the 12 months through December.

The primary budget surplus, which excludes interest payments, is closely watched by investors as a gauge of a country's ability to service its debt.

The consolidated public sector fiscal data encompasses the federal, state and municipal governments, state-owned companies and federal agencies.

NOMINAL SURPLUS

Including interest payments, Brazil also posted an overall, or nominal, budget surplus BRBUD=ECI of 5.53 billion reais in January, reversing a deficit of 470 million reais in the same month a year ago. It was the first time since June 2007 the government had a nominal surplus.

In the 12 months through January, the nominal budget deficit was equal to 2.02 percent of GDP, the lowest level since the central bank started tracking the data in 1991.

The bank said it expects the overall budget deficit for calendar year 2008 to fall to 1.2 percent of GDP.

Net public sector debt edged lower to 42.1 percent of GDP in January from 42.8 percent in December.

The central bank forecasts the debt-to-GDP ratio to edge up to 42.4 percent by the end of February but fall to 41.5 percent by the end of the year. (For central bank details on the January budget data in Portuguese, see: www.bcb.gov.br/?ECOIMPOLFISC) ($1=1.68 Brazilian reais) (Reporting by Isabel Versiani, Writing by Todd Benson and Elzio Barreto, Editing by Chizu Nomiyama,)