Brazil’s central government posted a 26.3% rise in its primary deficit in May from a year earlier, driven by higher spending, particularly on pensions. The monthly shortfall reached 53.257 billion reais ($10.31 billion), broadly in line with the 53 billion reais deficit forecast by economists in a Reuters poll.

In the 12 months through May, the deficit totaled 142.3 billion reais, equivalent to 1.06% of gross domestic product, versus a government target for a 0.25% primary surplus this year, with a tolerance band of plus or minus 0.25 percentage points of GDP.

According to the Treasury, the result reflected a real 9.4% increase in total spending, outpacing a 5.5% rise in net revenue, which has been supported by strong tax revenue, with record monthly collections in all months this year.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.