RSS   Newsletter   Contact   Advertise with us

Brazil's surplus to be $30.5 billion

Share on Twitter Share on LinkedIn
Staff writer ▼ | January 6, 2014
Brazil's Finance Minister Guido Mantega said the government is keeping spending under control and that the excess of revenue over expenditure before debt payments would be above the goal of 73 billion Brazilian Reais for 2013 ($30.5bn), or 1.5% of gross domestic product.
Guido Mantega
Guido MantegaBrazil's Finance Minister Guido Mantega said the government is keeping spending under control and that the excess of revenue over expenditure before debt payments would be above the goal of 73 billion Brazilian Reais for 2013 ($30.5bn), or 1.5% of gross domestic product.


"We met our fiscal result and we did a little bit more than 1.5% of GDP. It would not be good to keep analyst expectations hanging until the end of January. This will calm nerves," Mr. Mantega told reporters at a news conference in Brasilia, underlining that this was due to higher tax collection and stronger economic growth.

Mr. Mantega said the government usually collects extraordinary revenues in any given year, and that the state also had to deal with some extraordinary spending efforts as well. He said tax revenues are rising as the economy recovers from three years of subpar growth and added said revenues rose to a record level of 116 billion Reais in December even those actual tax levels are down.

There were extraordinary costs, Mr. Mantega said. The government paid out about 9 billion Reais last year to compensate electric companies for higher costs. Another 9 billion Reais has been set aside for 2014 but that may not all be spent as hydroelectric reservoirs are filling up.

The minister said "conditions are in place" for economic growth to accelerate in 2014, largely as a result of the expected growth of the global economy. "We are on a positive trajectory for the Brazilian economy".


 

MORE INSIDE POST