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Brazil govt sees fourth straight fiscal deficit in 2017: source
[BRASILIA] The Brazilian government is considering deducting up to 60 billion reais (S$23.3 billion) from its 2017 key fiscal savings goal, a government official told Reuters on Thursday, paving the way for a fourth straight annual deficit.
President Dilma Rousseff's administration will set a central government primary budget goal of zero per cent of gross domestic product for 2017, said the official who asked for anonymity because he was not allowed to speak publicly.
Ms Rousseff and her economic team are discussing that deduction as they prepare the 2017 budget guidelines law that will be sent to Congress on Friday. Every year the government deducts from its goal part of its public investments and tax revenues that do not materialize.
After running high primary surpluses, or excess revenues prior to interest debt payments, during the boom years of high commodity prices, Brazil is now struggling to close a widening gap. The government is already expecting a deficit for this year as tax revenues plummet.