(Adds historical comparatives, data for first six months of
year, debt to GDP ratio)
BRASILIA, July 31 Brazil posted its second
straight primary budget deficit in June, a weaker-than-expected
result that raises fears that the government of President Dilma
Rousseff could miss its key fiscal target for a third year.
Brazil had a primary deficit of 2.1 billion reais ($900
million) in June, the first gap for the month of June in at
least a decade, according to central bank data released on
Thursday. The country had posted a primary surplus of 5.429
billion reais in June of 2013.
The primary budget, which represents the public sector's
excess revenue over expenditures before debt interest payments,
had been expected to be a surplus of 200 million reais,
according to the median forecast of 10 analysts surveyed by
The country posted a primary deficit of 11.04 billion reais
A 1.9 billion reais deficit recorded by the central
government in June largely explains the negative result in the
consolidated figure, which includes the federal, state and
In the first six months of 2014, the government has been
able to meet 1.17 percent of its primary surplus target for the
whole year. The government pledged to save at least 99 billion
reais this year in primary surplus, or 1.9 percent of the
Brazil's public finances have deteriorated rapidly under
Rousseff after she gave tax breaks to dozens of industries in an
attempt to restart the country's stagnant economy.
Although the country's net debt is small compared to other
major economies, it is no longer declining as it was over the
past decade. The country's net debt as a percentage of GDP
climbed to 34.9 percent in June from 34.6 percent in May.
($1 = 2.26 Brazilian reais)
(Reporting by Alonso Soto and Luciana Otoni; Writing by Silvio
Cascione; Editing by James Dalgleish and W Simon)