Payment of salary bonuses and judicial decisions and judicial orders made the Central Government (National Treasury, Social Security and Central Bank) register the second worst result for the month of March since the beginning of the series in 1997. Last month, the deficit R $21.108 billion, only losing to March 2018 (R $24.495 billion).
The primary deficit is the negative result in the public accounts disregarding the payment of interest on the public debt. The result came slightly above the expectations of market analysts. In the Prisma Fiscal survey, released every month by the Ministry of Economy, financial institutions estimated a primary deficit of R $20.2 billion for March.
In the first three months of the year, the Central Government accumulated a deficit of R $9.307 billion. This is the best result for the period since 2015 (surplus of R $3.688 billion). The Treasury forecasts that it will close 2019 with a primary deficit of R $139 billion. At the end of March, the government had to block (block) R $29 billion from the Budget to reach this goal.
In March, revenues were influenced by the fact that the Treasury received dividends of R $1.1 billion from Banco do Brasil (BB) and R $1.8 billion from Caixa Econômica, against the receipt of R $497.6 million of dividends from BB in the same month last year. Discretionary (non-compulsory) expenses fell by R $4.5 billion (39.5%) compared to March 2018. According to the Treasury, in most cases, the amount was already released, but was not executed in a process called soaking.
In the accumulated of the year, the fiscal adjustment is occurring on the expenditure side. Until March, net revenues remained stable, rising only 0.1% above official inflation by the Broad Consumer Price Index (IPCA). Total expenses accumulated a drop of 1.2% also discounting inflation.
Social Security registered a deficit of R $, 49.313 billion from January to March, a figure slightly lower than that of the same period last year (-R $51.482 billion). The deficit was partially offset by the R $36.577 billion surplus of the National Treasury and the Central Bank, resulting in the primary deficit of R $9.307 billion.
In terms of expenses, costing expenses (maintenance of the public machine) fell by 7.2% in the first quarter after discounting inflation. Social Security expenditures rose 2.6%, and federal staff expenditures rose 0.1%, excluding the IPCA.
The largest decrease, however, was recorded in federal investments (public works and equipment purchases), which totaled R $6.201 billion from January to March, a decrease of 30.2% over the same period of last year, inflation.
The Treasury has again released statistics on the Growth Acceleration Program (PAC). In the first quarter, the program executed R $3.381 billion, with a reduction of 10.9% in amounts adjusted by the IPCA.