Economic Information

PRESS RELEASE - February 27, 2015

Fiscal Policy
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I - Fiscal results

The consolidated public sector posted a primary surplus of R$21.1 billion in January. The Central Government, regional governments, and state-owned companies turned in respective surpluses of R$10.1 billion, R$10.5 billion, and R$444 million.

Over twelve months, the primary deficit reached R$31.4 billion (0.61% of GDP), as compared to a deficit of R$32.5 billion (0.64% of GDP) in December 2014.

Nominal interests appropriated on an accrual basis reached R$18 billion in January, as compared to R$47.2 billion in December. The positive result of R$10.8 billion with foreign exchange swap operations contributed to this monthly reduction, as compared to the negative result of R$17 billion in December. Over twelve months, nominal interests totaled R$299 billion (5.81% of GDP), as compared to R$311.4 billion (6.08% of GDP) in the 12-month period up to December 2014.

The nominal result, which includes the primary deficit and the appropriated nominal interests, posted a surplus of R$3 billion in January. In the 12-month period, the nominal deficit reached R$330.4 billion (6.42% of GDP), as compared to R$343.9 billion (6.71% of GDP) in December 2014.

The January's nominal surplus reflected increases of R$39.3 billion in the net bank debt, R$24.6 billion in the other domestic financing sources, including the monetary base, and R$2.9 billion in the net external financing, which were partially offset by the expansion of R$63.8 billion in net bank debt.


II - Federal securities debt

The domestic federal securities debt, evaluated by the portfolio position, totaled R$2,138 billion (41.5% of GDP) in January, dropping by R$45.7 billion when compared to January. This result reflected net redemptions of R$69.6 billion and appropriation of interests, R$23.9 billion.

It should be highlighted net redemptions of R$74.7 billion in LTN (National Treasury Bills), R$11.9 billion in NTN-F (National Treasury Notes - Series F), and R$2.3 billion in NTN-C (National Treasury Notes - Series C); coupled with net issues of R$13.1 billion in LFT (Treasury Financing Bills) and R$6.3 billion in NTN-B (National Treasury Notes - Series B).

The participation by indexing factors registered the following evolution when compared with December 2014: the percentage of exchange-indexed securities remained stable at 0.4%; the participation of Selic-indexed securities shifted from 14.1% to 14.3%, due to net issues of LTF; the participation of fixed-rate securities dropped from 31.6% to 28.4%, due to the net issues of LTN and NTN-F; and the participation of inflation-indexed securities fell from 26.9% to 26.8%. The share of repo operations rose from 26.6% to 29.7%, reflecting net sales of R$103.2 billion.

In January, the maturity structure of the securities debt on the market was as following: R$375.2 billion, 17.5% of the total, maturing in 2015; R$335.6 billion, 15.7% of the total, maturing in 2016; and R$1,427.2 billion, 66.8% of the total, maturing as of January 2017.

At the end of January, the total net exposure in foreign exchange swap operations reached R$304.1 billion. The result of these operations over the period (the difference between the yield of the Interbank Deposit (DI) and the foreign exchange variation plus coupon) was favorable to the Central Bank by R$10.8 billion.


III - Public sector net debt

Public sector net debt (PSND) reached R$1,885 billion in January (38.6% of GDP), dropping by 0.1 p.p. of GDP as compared to the previous month. The monthly primary surplus accounted for a reduction that corresponded to 0.4 p.p. of the PSND/GDP ratio, while the impact of the nominal GDP growth accounted for a reduction of 0.2 p.p. Those factors were partially offset by the appropriation of nominal interests and by the parity adjustment in the basket of currencies that make up the net external debt, which accounted for respective increases of 0.4 p.p. and 0.1 p.p.

The General Government (Federal Government, INSS, state and municipal governments) Gross Debt reached R$3,315.3 billion in January (64.4% of GDP), up 0.9 p.p. of GDP as compared to the previous month.