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Federal Revenue Collection in Brazil: A Historic Milestone and Its Impact on the Economy
In August 2024, Brazil reached an impressive milestone in federal revenue collection, totaling R$ 201.622 billion. This amount represents a real increase of 11.95% compared to the same month in 2023, when R$ 172.785 billion was collected. This significant growth highlights the resilience of the Brazilian economy, which has managed to overcome challenges, including inflation, as measured by the Extended National Consumer Price Index (IPCA).
Additionally, nominal growth reached 16.69%, indicating an expanding economy despite inflationary pressures. In the first eight months of 2024, federal revenues amounted to R$ 1.731 trillion, a real increase of 9.47% compared to the R$ 1.517 trillion collected in the same period of 2023. In nominal terms, growth was 14.07%.
Best Performance Since 1995
The results for August 2024 and the accumulated revenue over the first eight months marked the best performance since 1995, both for the month and for the accumulated period. This increase reflects a combination of positive economic factors and efficient fiscal management by the government.
Among the key contributors to this growth were revenues administered by the Federal Revenue Service, which reached R$ 195.120 billion in August 2024. This amount represents a real increase of 12.06% compared to the same month in 2023, when R$ 167.036 billion was collected. For the year to date, these revenues totaled R$ 1.645 trillion, with a real growth of 9.41% and nominal growth of 14.01%.
Atypical Factors and Their Impact
The increase in revenue in August 2024 was also influenced by atypical factors that added R$ 3.830 billion to the total. One example was the resumption of tax payments in Rio Grande do Sul, which had been postponed due to heavy rains between April and May. In addition, R$ 230 million were collected through the update of assets and rights abroad, related to Personal Income Tax (IRPF).
Without these atypical factors, the real growth of revenue in August would have been 9.15%, and the cumulative increase for the first eight months of 2024 would have been 7.05%. These figures indicate that, even without extraordinary events, the Brazilian economy showed solid growth, particularly in the collection of federal revenues.
Data Release
The data was released on September 19, 2024, during a press conference at the Ministry of Finance in Brasília. The presentation was led by Claudemir Malaquias, Head of the Center for Tax and Customs Studies, and Marcelo Gomide, Coordinator of Forecasting and Analysis at the Federal Revenue Service. The session was broadcast live and is available on the official YouTube channel of the Ministry of Finance, allowing public access to more detailed information on the figures presented.
The Importance of Revenue Collection for the Economy
Federal revenue collection is one of the main indicators of a country’s economic health. Consistent growth in these revenues allows the government to invest in essential areas such as education, healthcare, infrastructure, and security, promoting a virtuous cycle of development. Positive performance also strengthens investor confidence and Brazil’s position in the global economic landscape.
With the economy expanding and efficient fiscal management in place, Brazil is on the right track to achieve sustainable growth goals. However, to maintain this momentum, it is essential to continue improving fiscal policies, ensuring that the benefits of revenue collection reach all sectors of society.
How Gescon Can Help Your Business
If you are an entrepreneur looking to expand or establish your business in Brazil, it is essential to rely on a team specialized in fiscal and tax management. Gescon offers a wide range of services, including BPO and tax consultancy, to ensure that your company remains compliant and can maximize growth opportunities. Contact us today to learn how we can help your business reach new levels of success!
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