MercoPress. South Atlantic News Agency

Brazil June public accounts improve supported by state and local governments’ surpluses

The Central Bank said the 12-mointh primary budget surplus was 2% of GDP

Brazil's twelve-month public sector primary budget surplus widened in June amid a robust surplus from state and local governments, helping bring the country's nominal deficit slightly narrower.

Brazil's central bank said the country posted a 12-month primary budget surplus of 91.45 billion Brazilian Reais (40.28 bn dollars), or the equivalent 2.00% of GDP, which was up from Reais 88.82bn, or 1.95% of GDP reported in May.

The primary surplus figures, however, don't include the effect of interest payments on debt. When those are included, Brazil in June posted a 12-month nominal public-sector deficit of 129.48 billion, or the equivalent of 2.83% of GDP. That figure narrowed from 130.61 billion, or 2.87% of GDP, in May.

The figures were based on an operating surplus of 5.43 billion Brazilian Reais in June, down slightly from a surplus of 5.68 billion in May, though wider from a 2.79 billion surplus reported in June last year. The June 2013 figure, meanwhile, was better than most market estimates of a surplus around 3.5 billion Reais.

The central bank said the country's operating surplus in June was composed of a surplus of 1.42 billion from the central government, a surplus of 836 million from state-controlled companies and a surplus of 3.17bn from state and municipal governments.

Brazil's net public-sector debt, meanwhile, fell in June to 1.580 trillion Reais, or 34.5% of GDP, from 1.583 trillion in May, or 34.8% of GDP.

Brazil government officials have said they will seek to meet a primary budget surplus target of 110.9 billion Reais, or 2.3% of GDP this year, as part of the country's ongoing efforts to pay down debt.