MercoPress. South Atlantic News Agency

Brazil overshoots target.

Brazil managed a primary budget surplus during the first half of 2004 equivalent to 5,76% of GDP, clearly overshooting the target agreed with the IMF.

Greater tax receipts and cuts in expenditure helped to achieve the surplus said a release from the Brazilian Central Bank.

Primary surplus that excludes debt costs reached 46,183 billion Reales compared to 40,009 Reales in the first half of 2003. The surplus agreed with the IMF was 32,6 billion Reales. Last June the surplus was 7,915 billion Reales compared to 3,030 billion Reales in June 2003.

The public debt/GDP ratio was 56% last June, a slight drop from the 56,6% of May.

Brazil is committed to a surplus equivalent to 4,25% of GDP as part of a stand by agreement of 40 billion US dollars. President Lula da Silva administration has anticipated it will not renew the IMF stand by agreement given the strength and sustainability of fiscal numbers.