Brazil Posts 2025 Primary Deficit and Record Debt as Government Cites Rule Compliance

Overview

• Central bank data show a consolidated primary deficit of R$ 55.021 billion in 2025, equal to 0.43% of GDP.
• The federal government’s result is reported at roughly a R$ 10 billion primary deficit under the fiscal framework’s exclusion rules, which are assessed using Banco Central statistics.
• The nominal deficit reached about R$ 1.06 trillion (8.34% of GDP) with interest expenses near R$ 1 trillion, partially offset by R$ 105.9 billion in swap gains.
• Public debt hit records at 65.3% of GDP for net debt (R$ 8.311 trillion) and 78.7% for gross debt (R$ 10.017 trillion).
• State-owned firms ran a R$ 5.871 billion deficit led by federal companies, with Correios’ liquidity strain reported to involve R$ 12 billion in late-2025 loans and a restructuring plan seeking additional funding.
• Carryover obligations known as restos a pagar rose 25% to R$ 391.5 billion in 2026, limiting budget flexibility for new spending.