FX.co ★ Brazil's Budget Deficit Widens in February

Brazil’s nominal budget deficit widened to R$100.6 billion in February 2026, up from R$97.2 billion a year earlier. The consolidated public sector posted a primary deficit of R$16.4 billion in February, improving from the R$19.0 billion shortfall recorded in February 2025. The Central Government registered a deficit of R$29.5 billion, and state-owned enterprises reported a deficit of R$568 million, which was partly offset by a R$13.7 billion surplus among regional governments.

Nominal interest expenses for the consolidated public sector totaled R$84.2 billion in February 2026, compared with R$78.3 billion in February 2025. This increase reflected higher net indebtedness, the Selic policy rate, and inflation, which more than compensated for the impact of two fewer business days and more favorable results from foreign exchange swaps. Over the 12 months through February, the nominal deficit reached R$1,089.6 billion, equivalent to 8.48% of GDP, remaining broadly stable as a share of GDP relative to the previous month.