The central government has a primary deficit of 16.42 billion reais in June

Deficit: result of this (National Treasury, Central Bank and Social Security) a was the fifth consecutive year that the government will not be able to save money to pay interest on the debt.

A primary deficit of 16.422 billion reais in June, announced on Friday the Treasury, worse than it was. expected and affected by increased transfers from the Union to states and municipalities.

In the Reuters survey, badysts forecast a rebound of 11.5 billion

In June, Transfers by the distribution of Union revenue increased 8.4 percent over the same period last year, to 20.508 billion reais, a move attributed by the Treasury to the "recla by the federal government in May, the remainder of the stock of special payments not reclbadified in November 2017. "

As a result, total net income decreased by 2.3% over a year earlier, discounting In turn, total expenditures decreased by 5.3% on the same basis of comparison, to R $ 105.275 billion, helped fundamentally by the government's strategy to anticipate the payment of court orders and convictions for March and April

L & # 39 last year, the Treasury took the bill between May and June, which affected, therefore, the basis of comparison, making the month of June 2017 heavier in this line.

The Treasury also reported that in the first half, the primary deficit reached R $ 32.867 billion, accumulating over a 12-month period a loss of R $ 103.2 billion.

The government reiterated the viability of this year's fiscal target, of a deficit of 159 billion reais, despite having reduced the gap to fill it to only 1845 billion reais, more than 6 198 billion reais before

The result of this year will be the fifth in a row that the government will not be able to do

At a press conference, Treasury Secretary Mansueto Almeida pointed out that the planned spending for the second half is heavier, including, for example, the payment of the 13th for civil servants. For this reason, the government forecasts a deficit of 124.3 billion reais from July to December.

In a presentation, the Department of Finance reported that departments spent less than $ 12.7 billion in financial disbursements. in real terms until June and could help reduce the deficit in 2018.

For specialists, the government will achieve this year's goal.

"Even with more moderate economic growth and subsidies for diesel prices, the primary outcome should be better around 10 billion reais than the target, with less than the current estimate and some resilience in recurring revenues, "wrote Banco Itaú's economists team in a note distributed by the brokerage firm of the bank