Brazil’s public sector posted another big deficit in September, with the 12-month figure soaring past the 2016 target for the first time this year, the Central Bank said Monday. September saw a monthly deficit of R$26.6 billion for a 12-month figure of R$188.3 billion. Brazil’s goal for the 2016 calendar year is a budget deficit no higher than R$170.4 billion. Officials are hoping extra revenues from a capital repatriation program will plug the gap by the end of the year. The program could raise one-time revenues of more than R$50 billion, according to officials. In August, Brazil’s public sector ran a monthly deficit of R$22.2 billion for a 12-month figure of R$169 billion. Deficits have been rising all year on declining tax revenues due to an ongoing recession. State and municipal governments have been hardest hit, causing many to delay payrolls and postpone payments to suppliers.
Link to Central Bank releaseMore Testimonials