Education, Economy and Defense portfolios will benefit the most; economic team reduces primary deficit projection to 1.8% of GDP
O Ministry of Economy announced on Thursday, 22, the release of BRL 4.5 billion of the 2021 budget. The amount was the last part of the BRL 9.2 billion contingent by the president Jair Bolsonaro (no party) when sanctioning the text, in April of this year. Another R$3.1 billion had already been released in early June. The Expenses and Income Report for the third quarter shows that the Ministry of Education will benefit the most, with the release of R$ 1.5 billion. The Economy folder comes next, with R$ 830 million, followed by Defense, with R$ 671 million. The freeze on federal government spending in 2021 was the result of an agreement made between the economic team and Congress to unlock the Annual Budget Law (LOA), which defines the amounts that will be pledged by the Union in the year.
The estimate for the central government deficit rose from R$ 187.7 billion, 2.2% of Gross Domestic Product (GDP), to R$ 155.4 billion, 1.8% of GDP. According to the economic team, the revision reflects the improvement in revenue, driven by the resumption of growth. The amount for extraordinary credit rose to R$124.8 billion, with an increase of R$25.5 billion, with emphasis on the extension of emergency aid. The federal government added BRL 64 billion in the perspective of total primary revenue, going from BRL 1.75 trillion to BRL 1.81 trillion. The forecast for net revenue for transfers went from R$1.43 trillion to R$1.47 trillion — an increase of R$43 billion. At the other end, the outlook for primary expenditures went from BRL 1.62 trillion to BRL 1.63 trillion, a difference of BRL 10.8 billion.