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31.03.202611:30:00UTC+00Brazil Swings From Strong Surplus to Deficit as Budget Balance Turns Negative in February

Brazil’s public finances registered a sharp reversal in February 2026, as the country moved from a substantial budget surplus in January to a notable deficit a month later, according to data updated on 31 March 2026.

In January 2026, Brazil’s budget balance stood at a surplus of 103.689 billion, reflecting a solid positive fiscal position at the start of the year. However, by February 2026, the indicator had turned negative, with the budget registering a deficit of 16.388 billion.

The swing from surplus to deficit over a single month highlights a marked shift in Brazil’s fiscal dynamics early in 2026. While specific drivers behind the move were not detailed in the latest release, the February reading suggests changing budgetary pressures that will likely draw close attention from policymakers and financial markets alike.

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