Brazil raised its 2012 forecast for dividends from state-controlled companies by 2.5 billion reais ($1.24 billion), which will help offset a drop in tax collection, according to the bimonthly budget revision.
The government reduced its 2012 tax collection estimate by 11.7 billion reais to 665 billion reais after reducing levies on consumer goods and payrolls to boost economic growth, the report published today on the Planning and Budget Ministry’s website said.
The central government, which includes the Treasury, the central bank and social security, targets a primary surplus before interest payments of 97 billion reais this year. In the first seven months of the year, the so-called primary surplus was 51.9 billion reais, or 54 percent of the 2012 goal.
The 2012 economic growth forecast was cut to 2 percent from 3 percent, as Finance Minister Guido Mantega anticipated on Sept. 13.