Brazil's Nominal Budget Deficit Narrows in January

Brazil's nominal budget deficit narrowed to R$40.1 billion in January 2026 from R$63.7 billion a year earlier, coming in slightly below forecasts of R$49.5 billion. The consolidated public sector posted a primary surplus of R$103.7 billion, compared to R$104.1 billion in January 2025. The Central Government and regional governments recorded surpluses of R$87.3 billion and R$21.3 billion, respectively, while state-owned enterprises posted a deficit of R$4.9 billion. Nominal interest expenses for the consolidated public sector totaled R$63.6 billion in January, up from R$40.4 billion a year earlier. The increase was driven by growth in the Selic rate and net debt stock, which more than offset gains from foreign exchange swap operations. Over the twelve-month period, the nominal deficit reached R$1,086.2 billion (8.49% of GDP).

Brazil’s nominal budget deficit widened to R$115.5 billion in December 2025, from R$80.4 billion in December 2024, above forecasts of a R$95.4 billion deficit. In the month, the consolidated public sector posted a surplus of R$6.3 billion, down from a surplus of R$15.7 billion a year earlier. The result reflected surpluses of R$21.6 billion in the Central Government and R$4.5 billion in state-owned enterprises, which were partly offset by a R$19.8 billion deficit in regional governments. Nominal interest expenditures rose to R$121.8 billion, from R$96.1 billion in December 2024, driven by higher Selic rates and a larger net debt stock. For full-year 2025, the consolidated public sector recorded a nominal deficit of R$1,062.6 billion, equivalent to 8.34% of GDP, compared with a deficit of R$998.0 billion, or 8.47% of GDP, in 2024.

Brazil’s nominal budget deficit widened to R$101.6 billion in November 2025, from R$99.1 billion a year earlier. The consolidated public sector posted a primary deficit of R$14.4 billion, versus R$6.6 billion in November 2024. The Central Government recorded a deficit of R$16.9 billion and state-owned enterprises a deficit of R$2.9 billion, while regional governments posted a surplus of R$5.3 billion. Nominal interest expenses totaled R$87.2 billion, down from R$92.5 billion a year earlier. Over the twelve months to November, the nominal deficit reached R$1.03 trillion, equivalent to 8.13% of GDP, compared with R$1.02 trillion, or 8.15% of GDP, in October.