Brazil’s public sector posted a large primary budget surplus, along with a rare nominal surplus, in October, aided by tax revenues from a capital repatriation program, the Central Bank said Monday. The primary surplus was a whopping R$39.5 billion, reversing September’s R$26.6 billion deficit. It was the first primary surplus since April. October also saw a R$3.3 billion nominal surplus, the first nominal surplus in 18 months. Primary figures include all forms of government expenditure except interest payments on debt; nominal figures include debt-service payments. October was aided by a one-off revenue stream of R$46 billion from a government program designed to entice Brazilians to repatriate previously undeclared overseas funds. The program included a 30 percent tax on such funds. Brazil is still running a huge deficit on an annual basis, however. In October, aided by the repatriation revenues, the 12-month primary deficit fell back to R$137.2 billion from R$188.3 billion as of September. Economists said it is now highly likely Brazil’s public sector will be able to reach its goal of limiting the calendar 2016 primary deficit to no more than R$170.4 billion.
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