O que é déficit e superávit primário e nominal?

Summary

In this video, economist Felipe Fernandes explains key financial concepts like surplus, deficit, primary, and nominal results, focusing on government finances. He clarifies how a surplus occurs when revenues exceed expenditures, and a deficit happens when the opposite is true. The primary result reflects the balance between taxes and government spending, while the nominal result includes interest on public debt. Felipe also discusses how governments borrow money through public debt to cover deficits and the impact of these financial operations on the economy and investments. This video helps viewers understand how these concepts affect financial decisions and the economy.

Takeaways

• 😀 A surplus or deficit is the result of a financial operation, which involves balancing positive (revenues) and negative (expenses) elements.
• 😀 A surplus occurs when income exceeds expenses, while a deficit happens when expenses are greater than income.
• 😀 In public finances, a surplus means the government collected more revenue than it spent, and a deficit means it spent more than it collected.
• 😀 Taxes are the primary source of government revenue, which helps fund public services like hospitals, schools, police, and courts.
• 😀 A deficit can be primary, which excludes interest on public debt, and nominal, which includes interest on debt.
• 😀 The primary result is calculated by subtracting public sector costs from tax revenue, excluding public debt and its interest.
• 😀 Nominal results include the costs of financing public debt (interest on bonds), which adds to the overall deficit.
• 😀 When a government is in a deficit, it often borrows money through issuing debt securities, which investors buy with the promise of interest returns.
• 😀 The ability to issue public debt is a common practice worldwide, though more sophisticated economies (like Germany or the U.S.) can manage this more easily.
• 😀 The government's monetary policies may deliberately create a deficit to control inflation by removing excess money from the monetary base through public debt securities.
• 😀 The relationship between public debt, interest rates, and monetary policies affects investments and the broader economy, which is important for investors to understand.

Q & A

What is a surplus in financial terms?

A surplus occurs when the income or revenue from a financial operation exceeds the expenses or costs, resulting in a positive balance.

What is a deficit in financial terms?

A deficit happens when the expenses or costs of a financial operation exceed the income or revenue, leading to a negative balance.

What is the difference between primary and nominal results in government finances?

The primary result reflects the government's fiscal balance before accounting for interest on public debt, while the nominal result includes interest payments on public debt, which can result in a larger deficit.

What role do taxes play in government finances?

Taxes are a key source of government revenue, which funds public expenditures such as hospitals, police, schools, and other public services, forming the basis of the government’s financial operation.

Why does the government go into deficit?

The government can enter into a deficit if it spends more than it collects in revenue, which is common during times of economic crisis or when it needs to finance public services and investments.

What is the purpose of public debt in government finances?

Public debt is used to finance the government's deficit by borrowing money from investors, who buy government bonds, with the promise of repayment with interest.

How does interest impact government debt and deficits?

Interest on public debt is included in the nominal result. It adds to the total cost of government borrowing and can exacerbate a deficit, making it more difficult to balance the budget.

What is the 'public machine' referred to in the video?

The 'public machine' refers to all the public services and institutions that the government funds, including hospitals, police, schools, courts, and other services that support society.

How does monetary policy affect government finances?

Monetary policy, including the management of the monetary base and inflation, can influence government decisions on public debt issuance. For instance, governments may issue debt to control inflation or stabilize the economy.

Why do some governments rely heavily on public debt despite being in deficit?

Governments may rely on public debt to balance their budgets when revenues do not cover expenditures. Issuing debt allows them to manage short-term financial needs and maintain public services without disrupting the economy.