BRASILIA. (Reuters) – Brazil’s central government has reported stronger than anticipated fiscal results in March. The higher revenue from taxes supported the report and it suggested a brighter fiscal future for 2022.

According to the Treasury, Thursday’s primary deficit for the central government was 6.3 billion reais (1.27 billion dollars) and less than what the median forecast in a Reuters poll predicted of a deficit of 13.6 billion reais.

The primary surplus grew to 49.6 billion Brazilian reais in the first quarter. This is more than twice the level seen last year.

The Treasury stated in a statement that they believe that the current results “suggest that an annual balance could better” than the March estimates of the Economy Ministry in its bimonthly revenue report and expenditure report.

According to the ministry, the annual primary deficit will be at 66.9 trillion reais. That is significantly lower than 170.5 billion reais.

However, the Treasury stated on Thursday that March data had showed a slight increase in net income which is well in excess of what was in the report.

The country’s primary deficit, which is worth 0.1% of its gross domestic product, reached 15.5 billion RAR in the twelve months ended March.

According to the Treasury, “The positive results that were recorded in 2022 at the beginning point of fiscal consolidation show the continuation of the fiscal consolidating process. It is a result of the good moment for revenues and control over expenses.”

Paulo Valle from Brazil is the Treasury Secretary. He says that tax revenue was boosted partly by increased income from investments and commodities. While the central bank has an aggressive monetary cycle in place to manage the country’s double-digit inflation rate, it claims this has led to higher taxes.

($1 = 4.9769 reais)