The Brazilian government delivered a 2017 public sector primary deficit of R$110.6 billion, well within the congressionally-set target of no more than R$163.1 billion. The deficit was also well below the 2016 primary deficit of R$155.8 billion. The deficit was brought under control in 2017 largely because of increases in revenues. Rising revenues came from both tax collections and special events such as sale of infrastructure concessions. Tax collections were enhanced by programs designed to clear up tax arrears. Primary figures, however, do not include debt-service payments. Because of debt-service payments, Brazil’s total public sector deficit rose in 2017 to the equivalent of 74% of GDP, up from 70% in 2016.
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