Improved tax collection allowed the Brazilian government to start the year with a record primary surplus of 31.069 billion reais (US$9.560 billion) in January, the best result in history for that month.
The National Treasury Secretariat reported that the result was 67,8% higher than the same month last year, when the surplus reached 18.005 billion reais (US$5.540 billion).
The account refers to the central government's balance sheet, and does not include expenditures for the payment of interest on public debt.
The surplus was possible because revenues grew 10,12% above inflation, against a 1,6% increase in expenditure growth.
In addition to the economic recovery, which boosted tax collection last month, the Special Tax Renegotiation Program and the growth of oil royalties (special taxes) contributed to the rise in revenues..
Despite the improvement in the performance of public accounts, Social Security recorded a deficit of 14.500 billion reais (US$4.460 billion) in January, a record value for the month.
The expectation is for a new increase in the pension system deficit this year.
For this reason, the government proposed a pension reform to Congress, which has not moved forward so far, with little chance of approval due to the election year.
Ten days ago, President Temer decreed federal intervention in public security in Rio de Janeiro, a measure that will be in effect until December 10, which prevents the reform from being voted on, since it is a constitutional amendment.
The results of the January accounts for the entire public sector, including governments and state-owned companies, as well as the balance of public debt payments, are due to be released on Wednesday (28.02.2018).
Source: Xinhua
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