Brazil’s nominal public sector budget deficit widened to BRL 166 billion in June 2026, up from BRL 108.1 billion in the same month a year earlier and above market expectations of a BRL 133.2 billion shortfall. The federal government registered a deficit of BRL 47.2 billion, regional governments posted a deficit of BRL 6.6 billion, and state-owned enterprises recorded a shortfall of BRL 5.5 billion.
At the same time, gross public debt climbed to 81.9% of GDP in July, its highest level since October 2021, compared with 81.1% in June and exceeding market projections of 81.5%. Over the 12 months through July, the nominal public sector deficit widened to 1.19% of GDP, up from 1.14% in the previous period.
