BRASILIA (Reuters) - Brazil's government will decide by late August whether it will raise taxes following a thorough review of potential asset sales, Finance Minister Henrique Meirelles said on Thursday as he announced the country's 2017 budget deficit target.

Meirelles said next year's deficit will be targeted at 139 billion reais ($41.31 billion), taking into account an estimated 55 billion reais in extra revenues compared with 2016. The government has forecast a budget gap of 170.5 billion reais in 2016.

(Reporting by Marcela Ayres; Writing by Alonso Soto and Silvio Cascione)