Brazil 2006 primary budget surplus drops to 4.32 pct of GDP

Jan 31, 2007 - Brazil recorded a primary budget surplus (excluding payment of interest on debt) of 4.32 pct of GDP in 2006, a decrease from 4.83 pct of GDP in 2005, the central bank announced.

However, the surplus is still higher than the government target of 4.25 pct of GDP.

Last year, the primary balance between income and expenditure reached 90.144 bln real (41.35 bln usd) versus 93.505 bln in 2005.

This budgetary effort has, however, not been enough for Brazil to be able to pay off all of the interest on its public debt, which last year reached 160.027 bln real (73.406 bln usd), or 7.66 pct of GDP, compared with 157.146 bln real and 8.11 pct in 2005.

Public deficit (after payment of interest on debt) has therefore increased to 3.35 pct of GDP versus 3.28 pct in 2005.