Economic Information

PRESS RELEASE - May 29, 2015

Fiscal Policy
 ZIP - 251 Kb

 Download Info

I - Fiscal results

The consolidated public sector posted a primary surplus of R$13.4 billion in April. The Central Government, regional governments, and state-owned companies turned in respective surpluses of R$10.6 billion, R$2.6 billion, and R$208 million.

In the year, the cumulative primary surplus reached R$32.4 billion, as compared to a surplus of R$42.5 billion in the first four months of 2014. In the twelve-month period, a deficit of R$42.6 billion (0.76% of GDP) was observed, as compared to a deficit of R$39.2 billion (0.7% of GDP) in March.

Nominal interests appropriated on an accrual basis reached R$2.2 billion in April, as compared to R$69.5 billion in March. The lower number of business days and the positive result of R$31.8 billion with exchange swap operations contributed to the monthly reduction, as compared to the negative result of R$34.5 billion in March. Total cumulative nominal interests in the year added up to R$146.1 billion, as compared to R$80.2 billion in the same period of the previous year. Over twelve months, nominal interests totaled R$377.3 billion (6.71% of GDP), dropping by 0.39 p.p. of GDP when compared to March.

The nominal result, which includes the primary result and interests appropriated on an accrual basis, posted a surplus of R$11.2 billion in April. In the year, the nominal deficit added up to R$113.6 billion, as compared to R$37.6 billion in the same period of 2014. In the 12-month period, the nominal deficit reached R$419.9 billion (7.47% of GDP), 0.33 p.p. of GDP lower than in the previous month.

The nominal surplus observed in April reflected decreases of R$8 billion in the net bank debt and R$5.3 billion in the other domestic financing sources, which include the monetary base, which were partially offset by increases of R$1.7 billion in the securities debt and R$367 million in the net external financing.

II - Federal securities debt

The domestic federal securities debt outside the Central Bank, evaluated by the portfolio position, totaled R$2,333.8 billion (41.5% of GDP) in April, increasing by R$17.3 billion when compared to the previous month. This trajectory reflected net issuances of R$9.8 billion, a reduction of R$1.6 billion due to the exchange depreciation, and the appropriation of interests of R$28.1 billion.

It should be highlighted net redemptions of R$53.8 billion in LTN (National Treasury Bills), R$0.8 billion in NTN-C (National Treasury Notes - Series C), and R$0.3 billion in NTN-A (National Treasury Notes - Series A); and net issuances of R$21.1 billion in LFT (Treasury Financing Bills), R$15.7 billion in NTN-F (National Treasury Notes - Series F) and R$8.5 billion in NTN-B (National Treasury Notes - Series B).

The participation by indexing factors registered the following evolution in relation to March: the percentage of exchange-indexed securities dropped from 0.5% to 0.4%; the participation of Selic-indexed securities rose from 14.4% to 15.3%, due to net issuances of LFT; the participation of fixed-rate securities decreased from 31.3% to 30.3%, due to net redemptions of LTN; and the participation of inflation-indexed securities rose from 26.7% to 27.4%, due to net issuances of NTN-B. The share of repurchase operations dropped from 26.8% to 26.3%, reflecting net purchases of R$25.2 billion.

In April, the maturity structure of the securities debt on the market was the following: R$279.9 billion, 12% of the total, maturing in 2015; R$380.3 billion, 16.3% of the total, maturing in 2016; and R$1,673.6 billion, 71.7% of the total, maturing as of January 2017.

At the end of April, the total net exposure in foreign exchange swap operations reached R$342.4 billion. The result of these operations in the period (the difference between the yield of Interbank Deposit (DI) and the exchange variation plus coupon) was positive by R$31.8 billion to the Central Bank.

III - Public sector net debt

Public sector net debt (PSND) reached R$1,897.7 billion in April (33.8% of GDP), rising by 0.7 p.p. of GDP as compared to the previous month. The 6.7% exchange appreciation in the month accounted for an expansion of R$65.6 billion in the PSND stock.

In the year, the PSND/GDP ratio dropped by 0.3 p.p., influenced by the 12.7% cumulative exchange depreciation in the period (-1.8 p.p.), the nominal GDP growth (-0.6 p.p.), the primary surplus (-0.6 p.p.), the incorporation of interests (+2.6 p.p.), and the parity adjustment in the basket of currencies that compose of the net external debt (+0.1 p.p.).

The General Government (Federal Government; INSS; state, and municipal governments) Gross Debt reached R$3,468.1 billion in March (61.7% of GDP), dropping by 0.6 p.p. of GDP as compared to the previous month.