LatinNews Daily - 30 June 2020

* Brazil’s national treasury has published the government’s fiscal results for May, according to which the central government posted a R$126.6bn (US$23.43bn) primary deficit. This compares to a R$14.7bn primary deficit in May 2019, and is a record negative result. “The deficit in May is principally explained by the significant reduction in tax collection, combined with the increase in the executive branch’s expenses resulting from the measures to combat the Covid-19 [coronavirus] crisis”, the treasury noted. The accumulated primary deficit in the 12 months to May stands at R$300.4bn, equivalent to 4.1% of GDP. The treasury expects the central government’s deficit to close the year at R$676bn, or 9.5% of GDP, although it warns that the deficit could rise to R$800bn if there are additional losses in tax collection or the extension of some emergency benefit programmes.

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