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Brazil's gross debt reached the historic mark of R$9 trillion in October 2024.
A Brazil's gross debt reached the historic mark of R$9,032 trillion in October 2024. The increase was 1,16% compared to September and 14,13% compared to October 2023. The data was released by the Central Bank this Friday (29) in the “Fiscal Statistics” report.
The amount includes the debts of the federal government, INSS and state and municipal governments. In 2024, the debt stock grew BRL 952,6 billionn. Since the begining of the Lula government, in January 2023, the increase already reaches R$ 1,8 trillion.
Debt Growth History
The historical series of General Government Gross Debt (GGGD) started in 2006. Since then, each administration has contributed to increasing the amount:
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HEALTH – FREE MARKET
- Lula's government (2007-2010): BRL 674,9 billion.
- Dilma's government (2011-2014): BRL 1,241 trillion.
- Dilma/Temer Government (2015-2018): R$ 2,020 trillion.
- Bolsonaro Government (2019-2022): BRL 1,952 trillion.
- Lula Government (2023-present): BRL 1,807 trillion.
Debt represents 78,6% of GDP
Gross debt reached 78,64% of GDP in October, the highest level since October 2021, when it reached 79,1%. In the accumulated total for 2024, the increase was 4,22 percentage points, totaling a growth of 6,96 points during the current government.
The debt-to-GDP ratio is a widely used metric to assess fiscal sustainability. Growth reflects both rising debt and a pace of economic expansion below that needed to contain the ratio.
Interest expenses increase by 80%
Nominal interest on the debt totaled R$111,6 billion in October 2024, an 80,3% jump compared to R$61,9 billion in the same month of 2023. The high Selic rate has been a determining factor in the increase in financing costs.
As a result, the nominal deficit of the consolidated public sector, which includes interest, was R$74,1 billion in October. In the last 12 months, spending on Interest reached R$869,3 billion, contributing to an accumulated nominal deficit of R$1,093 trillion, equivalent to 9,52% of GDP.
Escalating debt and high interest costs reinforce the need for adjustments in public accounts to ensure long-term fiscal sustainability.
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