Dec 18, 2011

Brazil Federal Government: Taxes Collection Growth

The federal government taxes collection rose 3.8% in October compared with the previous month and 14.7% compared to October 2010. In the past 12 months, the growth of federal revenues was 17.3% compared with 12 months immediately before. These data are available in the chart below.

Source :Brazilian Treausury and IBGE
Elaboration: the author

An important point to note about the growth of government revenues is that the growth was always above inflation between 2003 and 2011except in 2009, which was a year with negative performance of GDP. Another interesting point is in relation to the elasticity of revenue to GDP. In years of economic growth, revenues grew above the GDP and inflation, as opposed to years with economic recession. These factors suggest that if the international crisis was impacting on the growth of Brazil, the tax revenue may have a very low growth, with impact in public investments and in the evolution of public sector debt.

See more information about Brazilian Economy here.

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