Economic Information

PRESS RELEASE - May 26, 2017

Fiscal Policy
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I - Fiscal results

The consolidated public sector registered a surplus of R$12.9 billion in April. The Central Government, regional governments and state-owned companies registered respective surpluses of R$11.5 billion, R$867 million and R$590 million.

In the year, the consolidated public sector posted a surplus of R$15.1 billion, compared with a surplus of R$4.4 billion in the same period of 2016. In the 12-month period to April, the primary deficit added up R$145.1 billion (2.29% of GDP), 0.05 p.p. of GDP lower than the March's deficit.

Nominal interests appropriated on an accrual basis reached R$28.3 billion in April, compared with R$43.3 billion in March, partially reflecting the lesser number of working days in the month. In the year, nominal interests totaled R$138.8 billion, compared with R$108.7 billion in the same period of the previous year. In 12 months, nominal interests reached R$437.1 billion (6.89% of GDP), growing by 0.06 p.p. of GDP in comparison with the March's result.

The consolidated public sector nominal result, which includes the primary result and nominal interests appropriated on an accrual basis, posted a deficit of R$15.4 billion in April. In the year, the nominal deficit totaled R$123.7 billion, compared with a deficit of R$104.3 billion in the same period of the previous year. In 12 months, the nominal deficit reached R$582.2 billion (9.18% of GDP), growing by 0.01 p.p. of GDP when compared with the previous month's deficit.

The nominal deficit registered in April was financed through expansions of R$17.9 billion in the securities debt and R$20.6 billion in the other domestic sources of financing, including the monetary base, partially offset by decreases of R$21.1 billion in the net bank debt and R$2.0 billion 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$3,123.2 billion (49.2% of GDP) in April, increasing by R$9.4 billion when compared with the previous month. This result reflected net redemptions of R$12.4 billion, an increase of R$0.1 billion due to currency depreciation, and incorporation of interests amounting to R$21.6 billion.

It is worth highlighting net redemptions of R$43 billion in LTN, R$0.9 billion in NTN-C, R$0.7 billion in securitized credits, R$0.4 billion in CFT-E, and R$0.3 billion in NTN-A; coupled with net issuances of R$18.1 billion in LFT; R$8.3 billion in NTN-F, and R$6.7 billion in NTN-B.

The participation by indexing factors registered the following evolution in relation to March: the percentage of exchange-indexed securities dropped from 0.4% to 0.3%; Selic-indexed securities increased from 22.4% to 22.9%, due to net issuances of LFT; fixed-rate securities fell from 26.7% to 26.0%, due to net redemptions of LTN; and inflation-indexed securities rose from 24.7% to 24.9%, due to net issuances of NTN-B. The participation of repo operations rose from 25.5% to 25.6%.

In April, the maturity structure of the securities debt on the market was as follows: R$231.2 billion, 7.4% of the total, maturing in 2017; R$453.3 billion, 14.5% of the total, maturing in 2018; and R$2,438.7 billion, 78.1% of the total, maturing as of January 2019.

At the end of April, the total net exposure in exchange swap operations reached R$56.9 billion. The result of these operations in the period (difference between the yield of the Interbank Deposit and the exchange variation plus coupon) was unfavorable to the Central Bank by R$0.6 billion.


III - Public Sector Net Debt (PSND) and General Government Gross Debt (GGGD)

The PSND reached R$3,025 billion (47.7% of GDP) in April, falling by 0.1 p.p. of GDP compared with the previous month.

In the year, the PSND/GDP ratio increased by 1.5 p.p. due to the incorporation of nominal interests (increase of 2.2 p.p.), exchange rate appreciation of 1.9% (increase of 0.3 p.p.), the effect of nominal GDP growth (decrease of 0.6 p.p.), the primary surplus, (decrease of 0.2 p.p.) and the parity adjustment of the basket of currencies that compose the net external debt (decrease of 0.1 p.p.).

The GGGD (Federal Government, INSS, state and municipal governments) reached R$4,547.7 billion in April (71.7% of GDP), increasing by 0.1 p.p. of GDP as compared with the previous month.