Net borrowing of the government was of R$325.2 billion in 2014, according to the Government Intermediate Account – CIG. The negative balance in this indicator means a deficit, which should be financed through the issuing of financial liabilities. Gross fixed capital formation (investments) of the government reached R$138.2 billion, above the level of R$115.1 billion registered in the previous year. According to the Public Finance Statistics, the primary result – difference between government revenues and expenditures, excluding interests – was a deficit of R$19.6 billion.

Produced in partnership with the National Treasury Secretariat – STN and the Central Bank of Brazil, these figures can be found in the Public Finance Statistics and Government Intermediate Account 2014 publication. This teamwork aims at strengthening and improving the methodology for developing government statistics through the harmonization of concepts and methodologies, as well as through the information sharing among the STN, the IBGE and the Central Bank of Brazil. This study includes figures for the federal, state and municipal governments.

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The Government Intermediate Account – CIG brings an initial approach of the government accounts in the economic processes of production, income generation and distribution, consumption of goods and services and capital accumulation.  It is a necessary step for the development of the central account, which will be released with the results of the Annual National Accounts.

The Public Finance Statistics – EFP  focus on the impact of economic events on the government finances: revenue, expenditure and fiscal results, as well as on the impact of government actions on the economy by means of taxation, expenditures and loans.

The data on final consumption of government, gross savings and gross fixed capital formation come from the System of National Accounts, whereas primary and net operating results come from statements of the public finance statistics. Net lending/borrowing is present in both systems. The harmonization of concepts and methodologies of the Public Finance Statistics and of the National Accounts (SNA 2008) represents an improvement in the quality and precision of the information used to compute the final account of the government and, therefore, of the country´s GDP.

In addition to the transactions that affect the net worth and the non-financial assets, the transactions with financial assets and liabilities, i.e., the financial account will be included in the Government Intermediate Account and in the Public Finance Statistics from this publication onwards. It shows how the financial instruments to fund the government operations changed. Information from the Guaranteed Severance Fund – FGTS and from the Remaining Fund of the Social Integration Program and the Program of Formation of the Patrimony of Public Servants – PIS/PASEP are also included in the publication.

Net borrowing of government reaches R$325.2 billion

The CIG pointed out that net borrowing of the government hit R$325.2 billion or 5.7% of the GDP in 2014, according to the Quarterly Accounts. The positive balance in this indicator means a surplus; when negative, it means a deficit, which should be financed through the issuing of financial liabilities. The financial account pointed out that the main instrument used to fund net borrowing were long-term bonds, which showed a change of net worth of R$370.5 billion. This information should not be compared with those from previous years, due to methodological updates like the inclusion of the FGTS and Remaining Fund of the PIS/PASEP data.

According to the EFP, the primary result – difference between government revenues and expenditures, excluding interests – was of -R$19,642 (-0.3% of the GDP). Net operating result – which is revenue less expenditure, excluding expenses with net acquisition of non-financial assets – was also negative in R$276,853 million or -4.9% of the GDP.

Gross fixed capital formation in CIG reaches R$138.2 billion in 2014

Gross fixed capital formation – government investments – hit R$138.2 billion in 2014, changing from 2.2% of the GDP in 2013 (R$115.1 billion) to 2.4% in 2015. The three government levels showed a nominal growth in the gross fixed capital formation, highlighted by the municipal level, which increased 30.9% in relation to 2013.

Participation of municipalities in government gross value added increases

The gross value added of the government – difference between the production value and the intermediate consumption – remained continuously rising in nominal values and its composition by government level slightly changed in relation to 2013. While the participation of the federal level remained stable (31.9% to 32%), the municipalities changed their participation in the gross value added of the government from 31.2% to 31.6%. The state level maintained the biggest participation (36.4%), though reduced in relation to the previous year.