Record R$18.5 Billion Deficit in Brazilian State-Owned Enterprises Under Lula's Third Term

Since the beginning of President Luiz Inácio Lula da Silva's third term, Brazilian state-owned enterprises have recorded an unprecedented primary deficit of R$18.5 billion, according to data compiled by CNN Money from the Central Bank. The deficit grew from R$2.2 billion in 2023 to R$8.07 billion in 2024, reaching R$8.3 billion from January to August 2025. Notably, Petrobras and public banks are excluded from this figure due to their distinct financial autonomy.

The main contributor to this deficit is the postal service Correios, which posted a R$4.3 billion loss in the first half of 2025, on top of R$2.6 billion in 2024. Correios is undergoing a severe crisis and has announced a restructuring plan that involves requesting a R$20 billion loan.

Experts foresee the deficit persisting, particularly with the upcoming election year, where financial adjustments may be delayed. The Ministry of Management and Innovation argues that the primary deficit does not fully represent the financial health of these companies, as it may reflect prior investments funded by accumulated resources rather than managerial failure.

These financial challenges highlight the broader pressures on state companies amid political and economic conditions in Brazil’s current administration.