Brazil's federal government posts larger-than-expected primary deficit in November

BRASILIA, Dec 29 (Reuters) - Brazil's federal government on Monday recorded a larger-than-expected primary budget deficit for November, setting a more difficult path for President Luiz Inacio Lula da Silva's administration to comply with its annual fiscal target.

Treasury figures showed a primary deficit of 20.2 billion reais ($3.62 billion) in the month, wider than the 13.4 billion real shortfall estimated by economists in a Reuters poll.

The monthly deficit was steeper than the 4.5 billion real deficit posted in November last year, according to the figures, as net revenue posted a 4.8% year-on-year decline, while total expenditures climbed 4%.

Over the 12 months through November, the federal government's annual primary deficit reached 57.4 billion reais, equivalent to 0.47% of gross domestic product.

The government has set a target of balancing the primary budget this year, with a tolerance band of 0.25% of GDP above or below the goal.

Treasury Secretary Rogerio Ceron reaffirmed at a press conference on Monday that the target will be met, noting an expected 20 billion real surplus next month should ensure it.

"(2025 fiscal) result should be somewhere between the floor and the center of the target, closer to the center," Ceron said.