Brazil's tax revenue fell in May to the lowest level for that month in seven years, raising concerns about the strength of the country's economic recovery and the government's ability to meet its 2017 budget target.
Revenues, after adjusting for inflation, fell to 97.694 billion reais (US$29.550 billion) last month, 0,96 percent less than in May 2016., Brazil's federal tax agency said on Tuesday (20.06.2017).
Tax revenues in the first five months of the year totaled 544.485 billion reais, 0,35% more than the same period in 2016, the agency added.
The Brazilian economy has begun a slow recovery process after a two-year recession. Growth is forecast to be around 0,4% in 2017.
The government is betting on higher tax revenues and a strict limit on official spending to meet a budget deficit target primary budget of R$ 139.000 billion for this year.
Achieving that goal is considered a Key step for investors and rating agencies to ensure the sustainability of Brazilian debt in the long term.
Source: Reuters
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