BRASILIA (Reuters) – Brazil’s government revised its 2020 fiscal outlook on Thursday, and now projects significantly higher levels of debt and wider deficits as the COVID-19 crisis prompts increased emergency spending measures and hammers tax revenues.
The Economy Ministry now expects a central government primary budget deficit of 795.6 billion reais ($149 billion) or 11.5% of gross domestic product, compared with its previous forecast of a 675.7 billion reais shortfall, or 9.4% of GDP.
It also expects a wider public sector deficit of 828.6 billion reais or 12% of GDP, up from 708.7 billion reais and 9.9% of GDP, and gross national debt to reach 98.2% of GDP assuming consensus market forecast of a 6.5% decline in the economy this year.
(Reporting by Jamie McGeever, Editing by Franklin Paul)
