Brazil's government ran a fiscal deficit in December that nearly doubled from the previous month, underscoring the challenge facing President Jair Bolsonaro in his quest to balance the federal budget.
The central government, which includes federal ministries, social security and the central bank, posted a deficit of 31.784 billion reais (US$8.500 billion). before interest payments, almost double the 16.206 billion reais (US$4.300 billion) in November.
The government's overall primary deficit in 2018 narrowed 3,2% to 120.300 billion reais from 124.300 billion reais ($31.919 billion) a year earlier, a slight improvement to 1,7% of gross domestic product from 1,8%.
That was well below the government's target of a deficit of 159.000 billion reais ($42.188 billion), but it was the fifth consecutive annual primary deficit, the worst streak in history.
Once again, Social Security was the largest contributor by far.
"All analysts say it, and all studies show it: if Brazil does not reform social security, fiscal adjustment in this country will be impossible," Treasury Secretary Mansueto Almeida told reporters.
Overall, net government revenues last year rose 7,3%, or 2,6% in real terms, to 1,23 trillion reais, while expenditures rose 5,7%, or 2,0% in real terms, to 1,35 trillion reais, the Treasury said.
Source: Reuters
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