FX.co ★ Brazil's Budget Surplus Plummets into Deficit in May

In a striking turn of fiscal events, Brazil's budget position moved sharply from a surplus to a significant deficit in May 2025. According to the latest data updated on June 30, 2025, Brazil's budget surplus of 14.150 billion Brazilian reals, recorded just a month prior in April, reversed to a deficit of -33.740 billion in May.

This reversal marks a considerable financial shift in the country's economic landscape. It reflects underlying pressures that may have compounded within the national economy, possibly due to increased expenditures, decreased revenues, or a combination of fiscal imbalances.

The change signals potential concerns for the Brazilian government as it navigates these new economic challenges. Stakeholders will be closely observing any subsequent policy measures that may follow to address and stabilize this sudden fiscal deficit.