Government net borrowing in 2015 was R$ 519.9 billion in the approach of the Government Intermediate Account (CIG): 194.7 billion above the previous year's result (325.2 billion). The government gross fixed capital formation (investment), on the other hand, recorded R$ 101,9 billion below the R$ 138,1 billion registered in the previous year.  The net operating result (difference between government revenue and expenditure, except the expenses with the net acquisition of non-financial assets), estimated by the Public Finance Statistics, shrank R$ 512.2 billion.

This is what the publication Public Finance Statistics and Government Intermediate Account 2015 reveals, in partnership with the National Treasury Secretariat (STN) and the Central Bank of Brazil. This collective effort aims at strengthening and enhancing the methodology for calculating government statistics by harmonizing concepts and methodologies, and by information sharing among the STN, IBGE and Central Bank of Brazil. The study brings results for the federal, state and municipal governments. The complete publication of the survey can be accessed here.

Government net borrowing at R$ 519.9 billion

CIG reveals that, in 2015, the government net borrowing reached R$ 519.9 billion, or 8.7% of the GDP (2015 GDP of the Quarterly Accounts). In this indicator, the positive balance shows the existence of a surplus and, when negative, indicates a deficit, which will have to be financed through the issuing of financial liabilities. In 2014, government net borrowing was R$ 325.2 billion, or 5.6% of the GDP.

The net operating result, which is revenue minus expenditure, not considering the expenses with the net acquisition of non-financial assets, was also negative at R$ 512.2 million, or 8.5% of the GDP. In the previous year, the result was of R$ 276.9 million, or 4.9% of the GDP.

Gross fixed capital formation down to R$ 101.9 billion in 2015

The gross fixed capital formation (government investment) recorded R$101.9 billion in 2015, falling from 2.4% of the GDP in 2014 (R$138.1 billion) to 1.7% in the following year. The three spheres of the government had a nominal drop of the gross formation, with a highlight to the state sphere, with a decrease of 38% in relation to 2014.

Contribution of Federal Government up in government gross value added

The government gross value added (difference between production value and intermediate consumption) kept a continuous increase in nominal values and its composition by government sphere had a small change in relation to 2014. The contribution of the federal sphere increased from 31.2% to 31.4% whereas in the municipal sphere there was a reduction from 31.6% to 31.4% of contribution in the government gross value added. The state sphere kept the greatest contribution (37.2%), the same value of 2014.

The Government Intermediate Account (CIG) brings an initial view of the economic processes of production, income distribution, consumption of goods and services and capital accumulation. It constitutes a necessary step towards the development of the central account, which will be published together with the results of the Annual National Accounts.

Conversely, Public Finance Statistics (EFP) concentrate on the impact of economic events on the government finances: revenue, expenditures and fiscal results, as well as the impact of the government's actions on the economy by means of taxation, expenses and loans.

The data on the government final consumption, gross savings and gross fixed capital formation come from the System of National Accounts, whereas the primary and net operating results are generated from the Public Finance Statistics. Net lending/borrowing is found in both systems. The harmonization of concepts and methodologies of the Public Finance Statistics and of the National Accounts (SNA 2008) represents quality and precision improvement of the information used in the calculation of the government final account and, therefore, of the country's GDP.

From this publication on, data referring to the Constitutional Fund of the Federal District will be no longer reported in the federal sphere, being accounted for in the state level. This migration does not have an impact on the key variables of the public finance statistics in terms of the government’s total result.