SAO PAULO Aug 30 Brazil posted a primary budget
surplus of 2.3 billion reais ($975.8 million) in July
, central bank data showed on Friday, narrowing
sharply from the previous month as government revenue continued
The primary budget balance, which represents the public
sector's excess revenue over expenditures before debt payments,
was expected to reach a surplus of 6 billion reais, according to
the median forecast of 12 analysts surveyed by Reuters. The
country had a primary surplus of 5.429 billion reais in June.
The primary balance is a gauge closely watched by investors
because it measures a country's ability to service its debt. The
government missed its primary surplus target in 2012 and will
miss it again this year as a slew of tax breaks aimed at
reviving the economy hits revenues. The country posted a nominal
budget deficit of 21.1 billion reais in July.