Although Brazil’s public sector ran up a considerable primary deficit for the month of June, the 12-month deficit figure showed a clear tendency toward narrowing. According to Central Bank figures released Monday, the public sector ran up a monthly deficit in June of R$13.5 billion, with the pension system once again responsible for the bulk of the red ink. The 12-month figure, however, shrank to R$89.8 billion, or well below the calendar year goal of a deficit no greater than R$161.3 billion. The 12-month figure has been in retreat all year, after closing out calendar 2017 at R$110.6 billion. The deficit has been shrinking o n higher tax revenues. Tax revenues for the first half of the year were 6.9% higher, in inflation-adjusted terms, than in the first half of 2017. Revenues are higher on a modest economic recovery, aggressive efforts to collect tax arrears and sale of government assets.
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