Brazil central gov't primary surplus dips in July

Aug 28, 2007 - Brazil's central government primary budget surplus fell slightly to 5.052 billion reais ($2.52 billion) in July from 5.188 billion reais in June, the National Treasury said on Tuesday.

But the surplus surged 67 percent from July last year, when it reached 3.026 billion reais, as government revenue from tax collection jumped.

The surplus in 2007 through July was equal to 3.35 percent of gross domestic product compared with 3.27 percent of GDP over the same period of last year.

The primary surplus includes spending by the Treasury, central bank and social security system but excludes interest payments on debt and transfers to state and local governments.

It feeds into the consolidated public-sector primary surplus, which is closely tracked by investors as a measure of Brazil's ability to pay its debts. The consolidated primary surplus, due out Wednesday, also excludes interest payments.

($1=2.003 reais)