Brazil’s nominal public sector budget showed a deficit of BRL 97.6 billion in July 2026, down from BRL 175.6 billion in the same month a year earlier and smaller than market projections of a BRL 84 billion gap. By segment, the federal government posted a surplus of BRL 11 billion, while regional governments recorded a deficit of BRL 8.5 billion and state-owned enterprises reported a shortfall of BRL 1.1 billion.
At the same time, gross public debt climbed to 82.5% of GDP in July, the highest level since October 2021, up from 81.9% in June and above market expectations of 82.2%. Over the 12 months through July, the nominal public sector deficit narrowed to 0.67% of GDP, compared with 1.19% in the previous period.
