Brazil Budget Deficit Exceeds Expectations

2026-09-30 11:44 By Larissa Caser 1 min. read

The Brazilian government posted a nominal budget deficit of BRL 115.9 billion in August 2026, widening from BRL 91.5 billion in the same month a year earlier and exceeding market expectations of a BRL 109.4 billion shortfall.

The federal government recorded a BRL 14.7 billion deficit, while regional governments posted a BRL 2.7 billion surplus and state-owned companies registered a BRL 2 billion surplus.

Meanwhile, gross government debt rose to 82.9% of GDP in August, reaching the same level as recorded in October 2021, up from 82.5% in the previous month but falling short of market forecasts of a further increase to 83.1%.

Over the 12 months to August, the nominal public sector deficit narrowed to 0.62% of GDP from 0.67% in the previous month.



News Stream
Brazil Budget Deficit Exceeds Expectations
The Brazilian government posted a nominal budget deficit of BRL 115.9 billion in August 2026, widening from BRL 91.5 billion in the same month a year earlier and exceeding market expectations of a BRL 109.4 billion shortfall. The federal government recorded a BRL 14.7 billion deficit, while regional governments posted a BRL 2.7 billion surplus and state-owned companies registered a BRL 2 billion surplus. Meanwhile, gross government debt rose to 82.9% of GDP in August, reaching the same level as recorded in October 2021, up from 82.5% in the previous month but falling short of market forecasts of a further increase to 83.1%. Over the 12 months to August, the nominal public sector deficit narrowed to 0.62% of GDP from 0.67% in the previous month.
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2026-07-31