The Brazilian government posted a nominal budget deficit of BRL 166 billion in June 2026, widening from BRL 108.1 billion in the same month a year earlier and exceeding market expectations of a BRL 133.2 billion shortfall. The federal government recorded a BRL 47.2 billion deficit, while regional governments posted a BRL 6.6 billion deficit and state-owned companies registered a BRL 5.5 billion shortfall. Meanwhile, gross government debt rose to 81.9% of GDP in July, the highest level since October 2021, up from 81.1% in the previous month and above market forecasts of 81.5%. Over the 12 months through July, the nominal public sector deficit widened to 1.19% of GDP from 1.14% in the previous month.