INSUBCONTINENT EXCLUSIVE:
The February deficit marks a dramatic 45.6% reduction compared to the R$58.267 billion ($10.22 billion) shortfall reported in the same month
of 2024.This improvement stems primarily from spending cuts and modest revenue growth during the period
Treasury Secretary Rogerio Ceron attributed the better performance to a 12.6% real decrease in total expenditures, generating savings of
R$25.2 billion ($4.42 billion).Additionally, revenues increased by 3.1% in real terms, adding R$4.4 billion ($772 million) to government
The Brazilian government currently maintains a fiscal target of zero deficit for 2025.This goal includes a tolerance margin of 0.25% of GDP
in either direction, equivalent to approximately R$31 billion ($5.44 billion).razil Narrows Budget Deficit by 45% in February Amid Fiscal
($2.32 billion), representing 0.09% of gross domestic product
to date, Brazil has achieved a primary surplus of R$53.184 billion ($9.33 billion)
This amount substantially outperforms the R$21.195 billion ($3.72 billion) surplus recorded during the same timeframe in 2024.Ceron
explained that spending limitations resulting from the delayed approval of the 2025 budget contributed to the lower deficit
The government capped monthly expenditures at one-eighteenth of the annual budgeted amount while awaiting final approval.The government also
maintaining strict discipline during the first half of 2025 to support monetary policy
The central bank continues to implement interest rate hikes to control inflation and moderate economic activity.The positive budget trend
This increase largely stems from spending expansions during previous administrations.Brazil faces unique fiscal challenges compared to
Government spending consumes more than 45% of GDP, significantly higher than Argentina and Colombia (35%), Mexico (29%), and Peru
He emphasizes that with controlled inflation, managing public debt becomes more attainable despite the challenging international economic
