Brazils govt debt falls to 78.5% of GDP in March

div classBodysc17zpet90 cdBBJodivpBRASILIA Reuters Brazils government debt as a share of gross domestic product fell to 78.5 in March, the lowest level in almost two years, with improved revenues in states and municipalities leading to a new primary surplus for the month.p

pThat compares with a gross debt of 79.2 of GDP in February, to the best result since April 2020 78.4, when the country was beginning to be hit by the coronavirus pandemic.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pBooming revenue, helped by a surge in commodities, has lifted the governments budget, while expenditures have not grown at the same pace due to a constitutional spending cap.p

pThe public sector surplus excluding interest payments reached 4.3 billion reais 846.54 million in March, which led to a surplus equivalent to 1.37 of GDP in the 12 months. p

pBrazils states and municipalities posted a 11.9 billionreais surplus in the month, once again benefiting from larger federal government transfers and higher fuelrelated revenues.p

pStateowned companies recorded a 242 millionreais surplus and the central government posted a 7.8 billionreais deficit.p

pThe figures, released late due to a continuing strike by central bank employees, also showed a nominal result, which includes the payment of interest on the public debt, of a 26.5 billionreais deficit in March.p

pThe 12month nominal deficit dropped to 3.15 in March, from 3.38 in February. p

p1 5.0795 reaisp

p Reporting by Marcela Ayres editing by Jonathan Oatisp

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