Public sector records US$11.6 billion surplus in October with repatriation program

According to statistics divulged by the Brazilian Central Bank (BCB) on 28 November 2016, the public sector, inclusive of the federal, state, and municipal governments of Brazil, recorded a US$11.6 billion surplus for October 2016 (Folha de S. Paulo, Valor). The result is largely a product of a program which has regularized foreign assets, raking in US$13.2 billion in fines and income taxes through repatriation. Despite the relief from October, the public sector’s cumulative primary deficit remains negative at US$13.5 billion for 2016. Adjunct-chief of the BCB’s Economic Department Fernando Rocha said the BCB does not believe the monthly result, which was the best for the month of October since 2001, changes the long-term outlook on the public sector’s financial situation. The consolidated public sector looks to close 2016 with a total deficit of US$48.2 billion (2.64 percent of GDP), with the federal government aiming for a total deficit of US$50.1 billion (2.75 percent of GDP).