Brazil's debt-to-GDP ratio rises to 77.8% in June
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SAO PAULO, July 29 (Reuters) - Brazil's government debt as a share of gross domestic product rose to 77.8% in June from 76.7% the month before, central bank datashowed on Monday, as the country's public sector posted a larger-than-expected deficit.
The public sector's primary deficit in Latin America's largest economy reached 40.87 billion reais ($7.21 billion) last month, the central bank said, while economistspolled by Reuters expected a shortfall of 37.9 billion reais.
The country's primary budget deficit in the 12 months through June reached 2.44% of gross domestic product (GDP), according to the monetary authority.
Brazil's government last week widened its primary deficit forecast for this year and unveiled a spending freeze of 15 billion reais in order to meet its fiscal goals.
The fiscal target for this year is to eliminate the primary deficit, which excludes interest payments, with a tolerance margin of 0.25 percentage points of GDP in either direction.
($1 = 5.6656 reais)
Reporting by Camila Moreira and Luana Maria Benedito
Editing by Bernadette Baum and Gabriel Araujo
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