UPDATE 3-Brazil primary budget surplus rises to June record
(Recasts, adds comments from central bank)
By Isabel Versiani
BRASILIA, July 31 (Reuters) - Brazil's consolidated primary budget surplus <BRPSPS=ECI> grew to a record for the month of June, climbing to 11.65 billion reais ($6.22 billion) from a surplus of 10.44 billion reais a year earlier, the central bank said on Tuesday.
The result was higher than the 9.9 billion reais median estimate of 18 economists in a Reuters poll. The estimates ranged from 6.0 billion reais to 12.1 billion reais. In May, the consolidated primary surplus was 9.3 billion reais.
A strong surplus from state governments boosted the June result, as did a record contribution from federally run companies such as oil giant Petrobras (PETR4.SA: Quote, Profile, Research, Stock Buzz)(PBR.N: Quote, Profile, Research, Stock Buzz), said the bank's economic research director, Altamir Lopes.
"The primary result was the best ever for June, driven by state governments, whose revenues rose in line with economic activity," he said.
State and city governments produced a collective surplus of 3.33 billion reais, while state-run companies contributed 2.84 billion reais.
Lopes said monthly surpluses will tend to decrease in the second half of the year as government spending increases.
The primary budget surplus, which excludes interest payments, is closely watched by investors as a gauge of Brazil's ability to service its debt. Continued...






