Brazil's central government on Friday reported its first primary budget surplus in six months in October, thanks to an inflow of billions of dollars from an asset amnesty programme. The South American country posted a budget surplus of 40.814 billion reais ($11.9 billion) in October, a turnaround from a deficit of 25.303 billion reais in September.
October's surplus reduced the central government's shortfall so far this year to 55.821 billion reais. The fiscal reprieve will be shortlived as tax revenues continue to fall amid the country's worst recession in at least eight decades. Federal tax revenues data released earlier on Friday showed income would have dropped without the so-called repatriation program.
The central government, which includes federal ministries, social security and the central bank, had been expected to post a surplus of 25.261 billion reais, according to the median forecast in a Reuters poll of eight economists. The government reaped 46.8 billion reais from the program which gave criminal amnesty to Brazilians who paid fines and taxes on undeclared assets held abroad. A second repatriation program is planned for next year.
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