Public Finances
Public finances: government net borrowing increased by 111.2% in 2023
November 27, 2024 10h00 AM | Last Updated: November 27, 2024 08h14 PM
In 2023, the general government net borrowing amounted to R$ 844.0 billion, an increase of 111.2% from 2022. This change results from the nominal growth of expenditure of 13.2% from a year ago and an increase of 3.4% in revenue in the same period. These data come from the Public Finance Statistics and Government Intermediate Account, elaborated by the IBGE in partnership with the National Treasury Secretariat (STN) and the Central Bank of Brazil.
In the analysis of revenue, tax collection increased by 4.1% and social contributions, by 7.5% in 2023. On the other hand, other revenue fell by 3.4%.
| Resultad of Operations - General Government | Current Values (1 000 000 R$) (on Dec 31) | |||||
|---|---|---|---|---|---|---|
| Central Government | State Governments | Municipal Governments | Consolidation Column | General Government | ||
| 1 | Revenue | 2.778.175 | 1.359.638 | 1.132.891 | -1.156.351 | 4.114.353 |
| 11 | Taxes | 1.536.649 | 829.515 | 223.947 | 0 | 2.590.111 |
| 12 | Social contributions | 644.263 | 107.663 | 59.435 | 0 | 811.361 |
| 13 | Transfers / Donations | 1.767 | 311.112 | 752.058 | -1.064.911 | 25 |
| 14 | Other revenue | 595.496 | 111.349 | 97.451 | -91.440 | 712.856 |
| 1411 | Interests | 307.226 | 22.382 | 45.408 | -91.440 | 283.576 |
| 14x | Other | 288.270 | 88.967 | 52.043 | 0 | 429.280 |
| 2M | Expenditure (2+31) | 3.529.840 | 1.461.197 | 1.123.666 | -1.156.351 | 4.958.352 |
| 2 | Expenses | 3.549.047 | 1.443.028 | 1.077.275 | -1.156.351 | 4.912.999 |
| 21 | Employees' compensation | 233.373 | 469.504 | 478.332 | 0 | 1.181.208 |
| 22 | Use of goods and services | 85.488 | 189.419 | 334.217 | 0 | 609.124 |
| 23 | Consumption of fixed capital | 45.390 | 60.130 | 61.261 | 0 | 166.781 |
| 24 | Interests | 856.764 | 116.138 | 8.905 | -91.440 | 890.366 |
| 25 | Subsidies | 17.282 | 3.156 | 8.784 | 0 | 29.222 |
| 26 | Transfers / Donations | 808.181 | 256.209 | 5.389 | -1.064.911 | 4.868 |
| 27 | Social security and assistance benefits | 1.401.899 | 267.581 | 85.555 | 0 | 1.755.035 |
| 28 | Other expenses | 100.672 | 80.893 | 94.832 | 0 | 276.396 |
| 31 | Net investment | -19.207 | 18.169 | 46.391 | 0 | 45.353 |
| 311 | Fixed assets | -15.247 | 17.952 | 44.975 | 0 | 47.680 |
| 312 | Stocks | 1.562 | 217 | 1.417 | 0 | 3.196 |
| 313 | Valuables | 20 | 0 | 0 | 0 | 20 |
| 314 | Non-produced assets | -5.542 | 0 | 0 | 0 | -5.543 |
| Net lending (+)/borrowing(-) (1-2M) | -751.664 | -101.559 | 9.225 | 0 | -843.999 | |
| Primary net lending (+)/borrowing (-) ((1-1411)-(2M-24)) | -202.127 | -7.803 | -27.279 | 0 | -237.209 | |
| Sources: 1. Ministério da Fazenda/STN, 2. IBGE, 3. Banco Central do Brasil | ||||||
As for tax revenue, the highlight is the collection of property taxes, with an increase of 16,0%, driven by the increase of 24.7% in the collection of IPVA. Payroll and labor taxes increased by 12.6%. On the other hand, taxes on trade and foreign transactions recorded drops of 0.9%, due to the justified by the reduction of dollar in imports together with the increase of the average exchange rate in the year.
Taxes on goods and services, the most relevant group in terms of tax collection, recorded nominal growth of 3.3% in 2023 and taxes on income, profits and capital gains, nominal increase of only 3.4%.
Among other sources of collection, the negative highlights are revenues from dividends, with a drop of 39.44%, and revenue from concessions (especially for the exploration and exploitation of petroleum), with a drop of 30.1%. The positive highlight was due to other transfers, with an increase of 120.2%, mainly influenced to the collection of R$ 26 billion in left from PIS/Pasep and incorporated by the National Treasury (Constitutional Amendment no. 126, of 2022).
From the perspective of demand, all the aggregated items increased in 2023, and that accounted for the increase of Net Borrowing in the period. Social security and assistance benefits and compensation of employees grew by 14.3% and 10.6%, respectively. Nevertheless, other expenses stood out (mainly capital related ones, such as Minha Casa Minha Vida project), with 39.7% of increase. Expenditure on goods and services, interests and subsidies also rose, with rates of 12.23%, 9.8% and 7,7%, respectively.
Government accounts for 13.6% of GDP
In 2023, value added by the General Government was R$ 1,473.9 billion and its share in GDP was 13.6%, which means an increase of 0.2 percentage points from 2022. In absolute terms, the change was positive in all government spheres: 10.1% (federal); 8.8% (state) and 13.1% (municipal).
Municipalities increase their share in Value Added
The municipal sphere increased its share of in the government value added, with a change from 35.9% in 2022 to 36.6% in 2023, and that represents an increase of 0.7 percentage points. The federal sphere lost 0.1 percentage points, with a change from 27.3% in 2022 to 27.2% in 2023, and the state sphere lost 0.6 percentage points, with a change from 36.8% in 2022 to 36.2% in 2023.
Expenditure with Bolsa Família increase by 47.1% in 2023
Accounting for the highest weight in the public expenditure composition of Intermediate Government Account, social benefits increased by 3.6% thanks to the increase of Expenditure with other benefits from social security (8.6%) and social assistance benefits in specie (29.2%), an item under which Bolsa Família is listed, replacing Auxílio Brasil with a rise of 47.1% in 2023.
Gross fixed capital formation, a Variable that measures the future productive capacity of the General Government, reached R$ 215.8 billion in 2023, which represents an increase of 7.8% from 2022. The federal and the municipal governments, with rates of 22.8% and 28.6%, made up for the drop of 15.2% observed in state governments and boosted the increase of investments in 2023.
