Brazil posted in February the largest primary budget surplus on record for the month, the central bank said on Friday, underscoring the government's efforts to rein in public spending and paving the way for lower interest rates.
Brazil posted a consolidated primary budget surplus of 9.514 billion reais ($5.2 billion) in February. In January, the South American nation also posted a record primary surplus for that month as tax revenues remained strong. In the 12 months through February, the primary surplus, which excludes debt servicing costs, was equivalent to 3.3 percent of gross domestic product, unchanged from January.
The country posted an overall budget deficit of 8.755 billion reais, taking into account interest payments. In January, the overall budget balance reached a surplus of 6.35 billion reais - the first surplus since September 2010. As a percentage of GDP, the overall deficit in the 12 months through February declined to 2.34 percent from 2.41 percent in January.
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