Brazil’s public sector recorded a primary surplus of R$1.4 billion in July, reversing a R$55.3 billion deficit in June, according to official data. Separately, National Treasury data showed a R$97.6 billion July nominal budget deficit, above the R$84 billion forecast. The figures measure different fiscal balances and reporting bases: the primary balance excludes debt interest, while the nominal balance includes it. Seasonal corporate tax payments and the timing of mandatory transfers supported July’s primary result, while R$75.4 billion in public-debt interest payments, weaker commodity prices and slower economic activity drove the wider nominal shortfall. Economists cautioned that one month’s primary surplus does not resolve Brazil’s fiscal challenges. High interest rates, moderate growth and uncertainty over spending rules and tax reform continue to threaten debt sustainability, fiscal credibility and room for new spending. The source records cite different 2024 primary-balance benchmarks: a zero target with a 0.25% of GDP tolerance margin, and a permitted deficit of up to R$28.3 billion; the materials do not reconcile the differing frameworks or reporting bases.