Government net lending/borrowing in Brazil

Brazil's government deficit is the negative balance of the consolidated public sector's accounts when spending exceeds revenue over the year; when revenue exceeds spending, there is a surplus. It is released by the Banco Central do Brasil and is usually expressed as a share of GDP.

It is calculated as the difference between government revenue and spending. In Brazil it is customary to distinguish the primary balance (before interest payments on the debt) from the nominal balance (which includes them), with the balance measured against GDP to obtain the ratio.

The deficit drives the government's financing needs and the path of public debt. In Brazil, meeting the primary fiscal target is a key reference for the real, the yield curve and rating agencies; an upside miss tends to push the risk premium higher.

It is a low-frequency figure subject to revision. The nominal balance should be separated from the primary balance and from the cyclical component tied to the economic cycle, bearing in mind the weight of interest payments, which are highly sensitive to the level of the Selic rate.