Brazil’s Widening Fiscal Deficit Pressures Budget Goals

Brazil’s fiscal deficit widened in November from the year prior thanks to a decline in central government revenues, highlighting the challenge President Luiz Inacio Lula da Silva faces as he seeks to shore up public accounts in 2024.

The government posted a primary deficit of 37.3 billion reais ($7.6 billion) in November, according to central bank data released Friday. It is the worst November result since 2016, and marked a significant deterioration from a deficit of 20 billion reais a year ago. The figure takes into account results from the country’s pension system, regional governments, some state-owned companies and the central bank.