Lula's government runs a deficit of R$230.5 billion in 2023, the worst since 2020.

the government Luiz Inacio Lula da Silva (PT) recorded an initial deficit of 230.54 billion Brazilian reals In nominal terms in the public accounts in 2023. This was the second-worst result in the historical series that began in 1997. The negative balance has never been larger than in 2020, the first year of the Covid-19 pandemic. Here is the full one a report (PDF 316 – KB) and Power point (PDF file – 1 MB).

In real terms, given the inflation correction, the deficit was 230.9 billion Brazilian reals In 2023. The federal government's accounts returned to negative after recording a surplus of R$51.6 billion in 2022. From 2022 to 2023, public accounts worsened by R$282.5 billion in current values. The deficit in 2023 is equivalent to 2.1% of GDP, which is much higher than the Finance Minister promised. Fernando Haddadwith a gap of up to 1% of GDP.

The deficit was increased last year by the payment of 92.388 billion Brazilian reais under court orders – court debts that can no longer be challenged in court. The government obtained additional credit to pay the amount. The target set in the LDO (Law on Budget Guidelines) was a deficit of R$231.5 billion. If it had been exceeded, the government would not have violated the rule, because exceptional credit was not included in the rule.

When court ordered payment was ignored, the underlying disability was 138.15 billion Brazilian realsOr 1.27% of GDP. It is also higher than Haddad's personal goal of achieving a deficit of 1% of GDP.

Cerrone: The resultillness“

National Treasury Secretary Rogerio Ceron announced on Monday (January 29, 2024). Supplementary Law 201 of 2023which compensates states and municipalities for the loss of revenue from the ICMS (Circulation Tax on Goods and Services) on fuel, contributed to a decrease of R$ 20.98 billion in the public treasury.

According to him, this value reduced the initial result from 1.27% to 1.08% (by 0.19 percentage points). Cerrone announced that the result is “illness“.

“It is very close to the 1% that has been followed all year and which has faced many challenges“Cerone said,” he said.It seems to us a good result of what was sought. Remembering that we faced complications throughout the exercise that hindered better performance“, he added.

The Minister of the Treasury stated that he received a contribution from the Secondary School Permanent Fund amounting to R $ 6 billion and to capitalize it BNB Bank (Banco do Nordeste) in the amount of R$1.4 billion, which would reduce the initial result to 1.01% of GDP. The ratio corresponds to 109.67 billion Brazilian reais. Read the table below:

Disclosure/National Treasury – January 29, 2024

The initial deficit for 2023 was R$230.5 billion, but the government says provisions, such as court orders, increased the value by R$120.9 billion.

The primary result consists of the balance of revenues over expenditures, excluding interest payments on debts. The Finance Minister said in December that the deficit would already reach R$130 billion Jair Bolsonaro (pl). According to him, the draft annual budget law for 2023, sent by the previous government, projected a negative balance of R$63.7 billion. “There will be an increase in the deficit.”More than 60 billion Brazilian reals“For the promised modification of the then Auxílio Brasil, formerly Bolsa Família.

The BC (Central Bank) and the Treasury have differences in methodology regarding the classification of the R$26 billion government bailout from the PIS/Pasep fund. The workers forgot the money and it was transferred to the treasury. The monetary authority recognizes that value cannot be considered as primary income. In other words, the deficit will exceed R$250 billion in the accounts of the Bank of Colombia, which will release the official value on February 7th.

Details 2023

According to the Treasury report, total government revenues amounted to R$1.931 trillion, representing a 2.2% decrease in real terms compared to 2022. The government said there was a decrease of R$17.7 billion in CSLL (social contribution to net profit) and the Brazilian real. $7.7 billion with IPI (industrial product tax).

Lula's government spent R$2.162 trillion in 2023, a real increase of 12.5% ​​compared to the previous year. Social security benefits represent 42% of the total: R$913 billion, with a real growth of 7.9% compared to the same period last year.

Expenditures related to employees and social fees – which are salaries and other public service expenses – represent 17.1% of the total expenditures of the executive authority. They totaled R$369.4 billion in 2023, an increase of 2.8% compared to 2022.

December

The deficit reached R$116.1 billion in December 2023, the worst in the historical series that began in 1997. The result was reinforced by a payment of R$92.4 billion ordered by the court. When this cost is excluded, the negative balance will be R$23.8 billion.