UPDATE 1-Brazil’s central govt posts 54.1 bln reais surplus in 2022, first in 9 years

(Provides particulars, context)

BRASILIA, Jan 27 (Reuters) –

Brazil’s central authorities reported its first main price range surplus in 9 years, pushed by file revenues, however which doesn’t pave the way in which for continued fiscal enchancment, Treasury information confirmed on Friday.

The central authorities, comprising Brazil’s Treasury, central financial institution and Social Safety, posted a 54.1 billion reais ($10.7 billion) price range surplus earlier than curiosity cost in 2022. The final optimistic outcome was recorded in 2013.

It adopted a 4.4 billion reais surplus in December, which got here larger than the two.8 billion reais anticipated in a Reuters ballot.

The efficiency was extensively anticipated, helped by

file tax income

from a extra sturdy economic system and beneficiant dividends from state-run oil firm Petrobras, which had been boosted by surging commodity costs after the Ukraine struggle.

In 2022, the Brazilian economic system stunned on the upside amid an improved job market, sturdy resumption of companies and authorities stimulus measures on the eve of a presidential election.

Personal economists polled weekly by the central financial institution anticipate 2022 GDP to rise 3%, from simply 0.3% they’d forecast when final yr started.

Former President Jair Bolsonaro’s workforce had been highlighting that the general public accounts rebalancement was additionally as a result of liberal authorities reforms which have helped to extend personal funding and scale back the unemployment price.

In any case, the prospect was that the central authorities would once more file a main deficit this yr, worsened after leftist President Luiz Inacio Lula da Silva secured Congress approval, even earlier than taking workplace in January, for a multibillion reais spending bundle to fulfill welfare marketing campaign guarantees.

Surging bills led the first deficit budgeted for 2023 to achieve spectacular 232 billion reais. The brand new Finance Minister Fernando Haddad mentioned he would search to chop it

by greater than half

by boosting income and trimming expenditures. ($1 = 5.0783 reais) (Reporting by Marcela Ayres; Modifying by Mark Porter and Steven Grattan)

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