UPDATE 1-Brazil Feb primary surplus beats forecast

Tue Mar 31, 2009 11:19am EDT
(Adds nominal deficit and net public sector debt figures)
BRASILIA, March 31 (Reuters) - Brazil posted a consolidated primary budget surplus of 4.1 billion reais ($1.78 billion) in February compared with a surplus of 8.96 billion reais a year ago, the central bank said on Tuesday.
The government was expected to post a primary surplus of 2.7 billion reais, according to the median estimate of 19 economists surveyed by Reuters. Estimates for the surplus ranged from 700 million reais to 7.1 billion reais.
In the 12 months through February, Brazil posted a primary budget surplus equal to 3.43 percent of gross domestic product compared with 3.61 percent of GDP in the 12 months through January.
The primary budget surplus, which excludes interest payments, is closely watched by investors as a gauge of the country's ability to service its debt.
In January, Brazil's primary budget surplus totaled 5.18 billion reais.
Including interest payments, Brazil posted an overall, or nominal budget deficit of 6.07 billion reais in February, compared with a deficit of 6.48 billion reais the same month a year ago.
Net public sector debt rose slightly to 37 percent of gross domestic product in February from 36.9 percent of GDP in January.
($1=2.304 reais)
(Reporting by Isabel Versiani, Writing by Ana Nicolaci da Costa; Editing by Theodore d'Afflisio)