Brazil's central gov't deficit reaches $4.4 bln in September

15:28, October 30, 2009      

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Brazil's central government registered a deficit of 7.63 billion reais (4.41 billion U.S. dollars) in September, down from a surplus of 3.95 billion reais (2.28 billion dollars) in August, the Treasury Department said Tuesday.

The figure is the worst of this year and is in sharp contrast with a surplus of 6.13 billion reais (3.54 billion dollars) in the same period of 2008.

The bad results were attributed to the payment of the second installment of the Christmas bonus of Brazilian retirees and pensioners by the Social Security System, which posted a deficit of 9.17 billion reais (5.3 billion dollars), the Treasury Department said.

The Central Bank registered a deficit of 62 million reais (35.83 million dollars) in September, while the Treasury Department posted a surplus of 1.6 billion reais (926 million dollars).

The central government, which includes the Treasure Department, the central bank and the Social Security System, still managed to accumulate a surplus of 16.37 billion reais (9.46 billion dollars)in the first nine months of 2009, or the equivalent of 0.74 percent of the gross domestic product(GDP).

The figures, however, were still a big drop from the same period in 2008, when the central government registered a budget surplus of 80.98 billion reais (46.81 billion dollars), or 3.78 percent of the GDP.

The sharp fall was due to the shrinking economic activity amid the financial crisis and tax cuts adopted by the Brazilian government in the period, the Treasury Department explained.

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