Brazil's gross debt, which includes the debts of federal, municipal, state governments, and social security, reached the amount of 10.8 trillion reais, corresponding to approximately 1.84 trillion euros, during the month of June.
This result represents 81.9% of the Gross Domestic Product (GDP), indicating an increase of 0.9 percentage points compared to May. This level is the highest recorded since April 2021, when the gross debt was 82.6% of GDP.
In a period of three and a half years under the management of the current Brazilian president, Lula da Silva, the proportion of public debt to GDP has grown by 10.2 percentage points, according to data from the Independent Fiscal Institute (IFI) of the Brazilian Federal Senate.
The IFI estimates that, maintaining the current pace, this ratio could reach 115% of GDP within ten years.
Additionally, the Brazilian Central Bank disclosed that federal state-owned companies accumulated a deficit of 7.8 trillion reais (about 1.33 trillion euros) in the first six months of the year. This is the worst deficit ever documented by this monetary authority since 2002.
It is important to note that the calculations do not include the oil company Petrobras, the electric power company Eletrobras (which was privatized in 2022), and federal public banks.
Only in the month of June did these companies register a total deficit of 1.5 trillion reais, equivalent to 256.4 billion euros.
