Brazil posted another big public sector budget deficit in June, this time to the tune of R$10.5 billion. The 12-month deficit inched up from R$150.5 billion as of May to R$151 billion as of June as the country’s critical debt-to-GDP ratio advanced to 68.5%. The ratio ended 2015 at 66.2%. Economists have pointed to 70% as a crucial benchmark, with Brazil likely to suffer credit rating downgrades above that level. The public sector has been rolling up deficits in the face of ballooning retirement benefits and recession-induced declines in revenues. The budget deficit limit for calendar 2016 is R$170.5 billion.
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