Economic Information

PRESS RELEASE - April 30, 2015

Fiscal Policy
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I - Fiscal results

In March, the consolidated public sector posted a primary surplus of R$239 million. The Central Government turned in a surplus of R$1.5 billion, while regional governments and state-owned companies posted deficits of R$1.1 billion and R$97 million, respectively.

In the first quarter of the year, the cumulative primary surplus reached R$19 billion, as compared to a surplus of R$25.6 billion in the same period of 2014. In twelve months, the primary deficit added up to R$39.2 billion (0.7% of GDP), as compared to a deficit of R$35.8 billion (0.64% of GDP) up to February.

Nominal interests appropriated on an accrual basis reached R$69.5 billion in March, as compared to R$56.3 billion in February. This trajectory was consequent upon the higher number of business days and the unfavorable result of R$34.5 billion in foreign exchange swap operations, which was R$7.2 million worse than the February's result. Cumulative nominal interests in the year totaled R$143.8 billion, as compared to R$58.6 billion in the same period of the previous year. Over twelve months, nominal interests totaled R$396.6 billion (7.11% of GDP), up by 0.92 p.p. of GDP as compared to February.

The nominal result, which includes the primary result and nominal interests appropriated on an accrual basis, posted a deficit of R$69.2 billion in March. In the first quarter of the year, the nominal deficit added up to R$124.8 billion, against a deficit of R$33 billion in the first quarter of 2014. Over twelve months, the nominal deficit reached R$435.7 billion (7.81% of GDP), 0.98 p.p. of GDP higher than the previous month's results.

The March's nominal deficit reflected increases of R$69.1 billion in the securities debt, R$1.6 billion in the net bank debt, and R$1.9 billion in the other sources of domestic financing, including the monetary base, which were partially offset by the R$3.4 billion decline under net external financing.


II - Federal securities debt

The domestic federal securities debt, evaluated by the portfolio position, totaled R$2,316.5 billion (41.5% of GDP) in March, an expansion of R$103.1 billion when compared to the previous month. This trajectory reflected net issuances of R$73.6 billion, an increase of R$1.6 billion, due to the foreign exchange depreciation, and the appropriation of interests of R$27.9 billion.

It should be highlighted net issuances of R$64.2 billion in LTN (National Treasury Bills), R$9.6 billion in NTN-B (National Treasury Notes - Series B); and R$4.5 billion in NTN-F (National Treasury Notes - Series F); coupled with net redemptions of R$3.8 billion in LFT (Treasury Financing Bills), and R$0.6 billion in NTN-A (National Treasury Notes - Series A).

The participation by indexing factors posted the following evolution in relation to February: the percentage of exchange-indexed securities remained stable at 0.5%; Selic-indexed securities fell from 14.7% to 14.4%, due to net redemptions of LTF; fixed-rate securities increased from 29.5% to 31.3%, due to net issuances of LTN and NTN-F; and inflation-indexed securities rose from 26.5% to 26.7%, due to net redemptions of NTN-B. The share of repurchase operations dropped from 28.5% to 26.8%, as a result of net purchases of R$42.1 billion.

In March, the maturity structure of the securities debt on the market was as following: R$361.3 billion, 15.6% of the total, maturing in 2015; R$364.6 billion, 15.7% of the total, maturing in 2016; and R$1,590.5 billion, 68.7% of the total, maturing as of January 2017.

In the end of March, the total net exposure in foreign exchange swap operations reached R$358.2 billion. The result of these operations in the period - the difference between the yield of the Interbank Deposit (DI) and the foreign exchange variation plus coupon - was negative by R$34.5 billion to the Central Bank.


III - Public sector net debt

Public sector net debt (PSND) reached R$1,847.7 billion in March (33.1% of GDP), dropping by 0.7 p.p. of GDP as compared to the previous month. The monthly foreign exchange depreciation of 11.5% accounted for a reduction of R$100.6 billion in the PSND stock.

In the year, the PSND/GDP ratio dropped by 1.0 p.p., as a result of adjustments consequent upon the 20.8% cumulative foreign exchange depreciation over the period (-3.0 p.p.), the effect of the nominal GDP growth (-0.4 p.p.), the primary surplus (-0.3 p.p.) and the incorporation of interests (+2.6 p.p.).

The General Government Gross Debt (Federal Government; Social Security; state, and municipal governments) reached R$3,480.2 billion in March (62.4% of GDP), rising by 1.4 p.p. of GDP in comparison with February.