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.