Brazil Nominal Budget Balance

The Central Bank of Brazil (BCB) calculates consolidated fiscal statistics for the public sector, including the net debt and financing needs, reflected in the Nominal Budget Balance and the Primary Budget Balance of Brazil. Every month, a Fiscal Statistics report is published, reflecting the Nominal Surplus.

The difference between the government revenues and expenditures is the fiscal result, the calculations of which are performed using the nominal, operational and primary results.

The nominal result refers to the difference between the total movement of total revenues (including financial investments) and total expenses (including interest expenses), which corresponds to the Public Sector Financing Need (NFSP).

The operating result corresponds to the nominal result less the monetary restatement of the net debt, used to leave out the impact of inflation.

The primary result corresponds to the nominal result excluding the portion referring to the nominal interest (real interest plus monetary restatement) that focuses on the net debt, in order to verify the achievement of the target established in the Law of Budgetary Guidelines (LDO).

The Nominal Surplus occurs when the government makes a primary surplus, paying interest on the country's debt and still obtains a positive result, which is used to reduce Brazil's public debt (public debt/GDP).

A positive value of the Nominal Budget Balance indicates that there was a surplus of budget capital, which could have a positive effect on the Brazilian real.