* March deficit reverses large surplus year earlier
* Social security deficit doubles, weighing on results
* Nominal deficit jumps to 17.1 bln reais
(Adds year-earlier figures, nominal budget balance)
BRASILIA, April 30 (BestGrowthStock) – Brazil posted a consolidated
primary budget deficit in March, reversing a large surplus in
the year-earlier period due to a surge in the social security
deficit and higher public spending, central bank data showed on
Friday.
The primary deficit (BRPSPS=ECI: ) totaled 216 million reais
($125 million) last month, compared with a surplus of 7.93
billion reais in March 2009.
The government had been expected to post a primary surplus
of 4.1 billion reais, according to the median estimate of 13
economists surveyed by Reuters. Estimates for the surplus
ranged from 2 billion reais to 7 billion reais.
Investors monitor the primary budget surplus, which
excludes interest payments, as a gauge of a country’s ability
to service its debt.
In the 12 months through March, Brazil posted a primary
budget surplus equal to 1.94 percent of gross domestic product,
down from 2.11 percent in the year through February.
The country’s overall budget (BRBUD=ECI: ) showed nominal
deficit of 17.1 billion reais in March, compared to a deficit
of 6.74 billion reais a year earlier, the bank said.
Stock Market
($1=1.728 reais)
(Reporting by Isabel Versiani and Natuza Nery; Writing by
Elzio Barreto; Editing by Theodore d’Afflisio)
UPDATE 1-Brazil sees March primary deficit on spending jump
