Public surplus and deficit or taxes are calculated by the difference between the total of revenue collected e expenses spent by a government during a given period.
ADVERTISING
Fiscal surplus
In short, it means positive result. When the expected total revenues are higher than the total expenses, we say that there is fiscal surplus.
According to FGV EBAPE professor, Istvan Kasznar, the calculation of this balance takes into account factors such as:
| revenue | expenses |
| tax collection, potential sale of state-owned companies, interest and profits received from good management of state-owned companies | payment of civil servants' salaries, works, electricity, gas, telephone and other expenses to support the State |
Primary surplus
The primary result is defined by the difference between income and expenses without taking interest into account payable in public debt.
ADVERTISING
According to Professor Istvan, the primary indicator does not help to translate the government's monetary situation, because only the final surplus - or nominal surplus – can you tell if there is final net cash positive. It is this value, according to him, that should be sought by any government that has fiscal discipline.
“We often have the desire to show a good situation”, says Istvan, who explains that this trend is related to the high Brazilian interest rate. “When you disregard the interest payable, which amounts to 45% of total normal public expenditure in Brazil, it is clear that you can reach a small surplus of 2% to 3%”, he adds.
Fiscal deficit
If, on the other hand, the government's total expenses are greater than its revenues, a public or fiscal deficit occurs, which signals a loss to the government.
ADVERTISING
Primary deficit
When calculating the primary deficit, interest and monetary correction expenses are disregarded.
Thus, if a country runs a primary deficit in its balance, he owes “in addition to debt service”, as economist Raul Velloso, a specialist in public accounts, put it in an interview with G1.
Curto Curatorship
- Understand what tax cycles are (Nexo Jornal)
