UPDATE 1-Brazil bets on extra revenues to improve finances
BRASILIA, Nov 28 (Reuters) - Brazil's primary surplus will soar in the last two months of this year thanks to extraordinary revenues, Treasury chief Arno Augustin said on Thursday, evidence of the government's reliance on one-time cash inflows to try to meet an important fiscal goal in 2013.
President Dilma Rousseff is betting on extra cash stemming from last-minute corporate tax settlements and an oilfield auction bonus to beef up the government's finances, which are under close scrutiny from investors.
Augustin said the government has already received 15 billion reais($6.45 billion) from the Libra oilfield auction and expects more money to flow in from corporate tax settlements. Brazilian miner Vale SA agreed on Wednesday to pay the government 22.325 billion reais in back taxes, of which 5.965 billion reais will be paid in November.
The rapid erosion of Brazil's finances this year has triggered alarm in the market, raising fears of a sovereign rating downgrade next year that could scare off investors and undermine a timid recovery in Latin America's largest economy.
A series of tax breaks and high public spending will make it very difficult for Brazil to meet its already-reduced overall primary budget surplus target of 2.3 percent of the gross domestic product.
In the 12 months through September, the primary surplus was equivalent to 1.58 percent of gross domestic product, down from the 1.82 percent posted in August.