Brazil’s Central Government recorded a primary deficit of 13.6 billion reais in August, according to the Treasury result released on September 29. The primary balance compares public revenue with spending before interest costs. The August 2025 deficit was 15.5 billion reais at current prices, so the difference between those nominal monthly amounts is not, by itself, an inflation-adjusted measure of improvement. The Finance Ministry said net primary revenue rose 3.5% in real terms from a year earlier, while total primary expenditure increased 1.9%. It put the real revenue increase at 6.3 billion reais and the spending increase at 3.7 billion reais.

From January through August, the Central Government posted a primary deficit of 94.9 billion reais, compared with 85.9 billion reais in the same eight months of 2025 at current prices. In the ministry’s real comparison, net revenue rose 5.7%, an increase of 90.0 billion reais. Total expenditure also grew 5.7%, adding 96.3 billion reais. Equal real growth rates for revenue and spending do not change the fact that the year-to-date nominal deficit was larger than in the prior-year period. These figures compare the same accounting perimeter across periods; on their own, they do not state the deficit as a share of gross domestic product or establish a conclusion about debt sustainability.

In August, the combined result of the National Treasury and the Central Bank was a surplus of 5.0 billion reais, while the General Social Security System recorded a deficit of 18.6 billion reais. The ministry said the real rise in revenue reflected a 5.6% increase in receipts administered by the Federal Revenue Service, a 6.3% rise in net collections for social security, and a 5.3% increase in non-administered revenue. The reported increases were 7.6 billion, 3.9 billion and 1.6 billion reais, respectively. Separating these components shows that the consolidated balance combines several public accounts. The release does not provide a detailed causal assessment measuring the tax base or individual policy effect behind each movement.

On the spending side, one item affecting the August comparison was 4.9 billion reais for the Special Fund for Campaign Financing, which had no execution in 2025. Social security benefits rose by 2.7 billion reais, unemployment allowance and insurance by 2.4 billion, and extraordinary credits by 1.3 billion. Discretionary spending fell by 5.6 billion reais, with a 2.9 billion decline in the health function standing out. Across the first eight months, the largest cited contributors to higher expenditure were social security benefits, up 29.3 billion reais, and discretionary spending, up 35.8 billion. Within discretionary areas, health rose 16.2 billion reais and education 10.3 billion.

The report linked part of August’s extraordinary credits to measures intended to mitigate economic effects of conflicts in the Middle East, citing subsidies for road diesel trade and imports and a contribution to the Investment Guarantee Fund. This note identifies the stated budget items; it does not quantify the total impact of external events on Brazil’s economy. The monthly primary balance also excludes interest payments, so it is not interchangeable with the government’s full financing requirement. The first-eight-month figures show a larger cumulative deficit even as real revenue and spending grew at the same rate. Future outcomes depend on subsequent data and budget execution; this release is a report of public accounts for the period, not a forecast.