By Alonso Soto and Luciana Otoni
BRASILIA (Reuters) - The Brazilian government is considering cutting its most closely watched fiscal target in 2014 as revenues came in worse than expected and one-off expenditures climbed, Treasury chief Arno Augustin told Reuters on Friday.
This is the first time a senior official has publicly admitted the government could reduce its 2014 primary surplus target of 99 billion reais, or 1.9 percent of gross domestic product. Markets have widely expected such a move.
"Evidently if revenues came below what we expected that means that we need to reassess... we need to do something," Augustin said when asked if the government could adjust the target.
"I cannot give you my opinion because the government is discussing the subject and when it reaches a decision it will be released in a document."
Most market economists are convinced that President Dilma Rousseff will again fail to meet the fiscal target as a contracting economy slows tax collection while public spending picks up ahead of the October presidential vote.
The primary budget represents the public sector's excess revenue over expenditures before debt payments. In the first seven months of 2014, the government has been able to meet just 25 percent of its primary surplus target for the whole year.
(Writing by Alonso Soto; Editing by Meredith Mazzilli)
