BRASILIA (Reuters) - Brazil’s central government on Monday posted a primary budget deficit of 38.357 billion reais ($11.6 billion) BRCGPB=ECI in November, a wider gap than expected that erased nearly all the gains recorded the previous month.
The central government, which includes federal ministries, social security and the central bank, had been expected to post a deficit of 34.5 billion reais, according to the median forecast in a Reuters poll of eight economists.
Treasury chief Ana Paula Vescovi said the government will meet its 2016 primary deficit target of 163.9 billion reais and still be able to pay an extra 20 billion reais in accrued obligations that have been accumulated over the years.
She also said the government expects the country’s public sector debt to continue to climb in the next three to four years and only stabilize with the help of a mechanism that starts limiting public spending in 2017. The country’s gross debt stands at 70 percent of gross domestic product.
In October, the central government recorded a surplus of 40.8 billion reais thanks to income from a program that gave amnesty to Brazilians who paid fines and taxes over undeclared assets held abroad.
Reporting by Marcela Ayres and Alonso Soto; Editing by Leslie Adler and Alan Crosby