LatinNews Daily - 30 January 2020

* Brazil’s economy ministry has announced that the central government registered a nominal primary deficit of R$95.1bn (US$22.48bn) in 2019, compared with R$120.2bn in 2018. The cap for the central government’s primary deficit had been set at R$139bn (1.91% of GDP) in the 2019 budget. Representatives from the economy ministry have noted that the so-called ‘golden rule’ (which bans debt issuance to fund current spending) was respected last year, and that all the branches of government met their respective spending caps. The national treasury secretary, Mansueto Almeida, warned against complacency, however. “But is the fiscal adjustment done? No. We have huge fiscal risks. We are still a country with a high tax burden and in which the public sector has lost the ability to invest”, he said. Full data for the public sector primary deficit is due to be published by the central bank (BCB) tomorrow (31 January).

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