FX.co ★ Brazil Nominal Budget Deficit Widens in December

In December 2025, Brazil's nominal budget deficit expanded to R$115.5 billion, surpassing the previous year's R$80.4 billion and exceeding anticipated projections of R$95.4 billion. During the same month, the consolidated public sector experienced a surplus of R$6.3 billion, a decrease from the R$15.7 billion surplus reported in December 2024. The figures represent surpluses of R$21.6 billion within the Central Government and R$4.5 billion from state-owned enterprises, although these were counterbalanced by a significant R$19.8 billion deficit recorded by regional governments. The nominal interest expenditures escalated to R$121.8 billion from the previous year's R$96.1 billion, primarily influenced by increased Selic rates and an expanding net debt stock. Across the entire year of 2025, the consolidated public sector witnessed a nominal deficit totaling R$1,062.6 billion, constituting approximately 8.34% of GDP. This compares to a deficit of R$998.0 billion, or 8.47% of GDP, registered in 2024.