Wires

Brazil oil auction to clear govt budget freezes this year -secretary

SAO PAULO, Nov 12 (Reuters) - Brazil's government may be able to clear budget freezes it had in place for this year thanks to income from last week's Transfer of Rights oil auction, special secretary to the economy ministry Waldery Rodrigues said on Tuesday.

Rodrigues said the freeze in place, currently around 14 billion reais ($3.36 billion), could be reversed entirely.

His remarks come despite a disappointing outcome in the oil auction last week, as high prices and the dominant role of state-run oil company Petrobras SA scared off global oil majors.

The Treasury will still receive a net value of 23.7 billion reais following the oil auction, after payments due to Petrobras and sharing funds with states and municipalities.

Earlier this year, the government had frozen over 30 billion reais from this year's budget as it battled to keep spending under control amid a sluggish economy and weak tax revenues.

Rodrigues added that Brazilian government's primary deficit this year should be around 80 billion reais. For 2020, he said, the government will not change its deficit target of 124 billion reais.

($1 = 4.1637 reais) (Reporting by Gabriel Ponte; Writing by Gabriela Mello and Jamie McGeever; Editing by Richard Pullin)