UPDATE 1-Brazil central govt primary surplus rises in August

* Brazil central govt posts 4 billion reais budget surplus

* Balance for 2010 through Aug totals 29.7 billion reais

* Treasury Secretary sees record surplus in September

BRASILIA, Sept 28 (BestGrowthStock) – The primary budget surplus
for Brazil’s central government rose slightly in August from a
year earlier as a jump in economic activity boosted tax
collections, the National Treasury said on Tuesday.

The central government — which includes the national
treasury, the central bank and the social security system —
posted a 4 billion reais ($2.34 billion) surplus in August from
3.4 billion reais in the same month a year ago.

The data comes as Latin America’s largest economy is
showing signs of picking up pace and federal tax revenue hit a
record for the month of August. See [ID:nNN1615410].

Analysts in a weekly central bank survey have increased
their expectations for growth this year for four weeks running
and now see the economy expanding 7.53 percent from 7.47
previously.

The central government’s primary budget surplus should hit
an all-time record in September, Treasury Secretary Arno
Augustin told reporters in Brasilia, the same month in which
oil giant Petrobras (PETR4.SA: ) (PBR.N: ) held a massive stock
offering.

The state oil company sold $70 billion in shares at a
higher-than-expected price on Sept. 24, in a record deal that
could make the country one of the top global energy exporters.
See [ID:nN24180377].

Augustin also said the sovereign wealth fund had not yet
intervened in the foreign exchange market (Read more about international currency trading. ) amid widespread
speculation the Finance Ministry could soon use it to buy
excess dollars and help curb a rise in the local currency.

The primary surplus for the year through August totaled
29.7 billion reais or the equivalent of 1.29 percent of gross
domestic product, up from 1.16 percent of GDP during the same
period in 2009.

The central government surplus feeds into the consolidated
public-sector primary surplus, which is closely tracked by
investors as a measure of Brazil’s ability to pay its debts.
The consolidated result is due to be released on Wednesday.

The primary surplus represents the excess of revenues over
expenditures, without factoring in interest payments on the
debt.

($1=1.708)
(Reporting by Isabel Versiani; Writing by Ana Nicolaci da
Costa, Editing by W Simon )

UPDATE 1-Brazil central govt primary surplus rises in August