Brazil Slashes 1/4 of Its Defense Budget

Super Hornet: the Brazilian military's favorite It’s the intention of the Brazilian government to cut US$ 4.2 billion Brazilian reais (US$ 2.5 billion) from its 15.17 billion reais (US$ 9.1 billion) defense budget this year under proposed fiscal tightening, according to recent announcement by Brazil’s Defense Minister Nelson Jobim. 

In a note published on the ministry website, the government confirmed that discretionary defense spending would be reduced by 26.5% of total allocated defense ministry spending.

The reduction in defense spending comes as part of the government’s plans to reduce overall spending by 50 billion reais (US$ 30 billion) this year in an effort to curb excess demand in the economy and inflation pressure.

Jobim, however, said the proposed cuts would not necessarily hinder the government’s plans to make a final decision this year on a purchase of new fighter jets for its armed forces.
The purchase of up to 36 jets, which has been on hold since 2002, is expected to cost the government up to 4 billion US dollars or more. But according to Jobim, the purchases would only have an impact on the federal budget in 2012 or 2013.

Among the finalists for the tender are Rafale fighters produced by France’s Dassault Aviation, Gripen jets manufactured by Sweden’s SAAB and F-18 Super Hornet fighters by the U.S.’s Boeing.

Brazilian government officials from the previous administration of president Luiz Inácio Lula da Silva had initially hinted at a preference for the Rafale jets, although the Air Force was inclined for the Boeing model. However the new administration recently indicated a willingness to further review the competing proposals.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Judge Explains Anti-US Measure

Since the first of the year, Americans arriving in São Paulo are being photographed ...

Brazilian Industry Says Disappointing Cut in Interests Brought Bitter Christmas

The Brazilian Central Bank’s Monetary Policy Committee (Copom) has lowered the country’s key interest ...

Brazil Defends GMOs at UN and Bars Tougher Rules on Biosafety

Key United Nations negotiations on the safe trade of genetically modified (GM) crops and ...

Portugal Wants Large Telecom with Brazil to Promote Portuguese Language

Portugal's prime minister, José Sócrates, defended the creation of a large Portuguese and Brazilian ...

Lula Renews Appeal to Save Brazilian from Firing Squad in Indonesia

Brazilian President Luiz Inácio Lula da Silva ordered on Friday, February 10, that "additional ...

Brazil in Algiers Fair Showing Its Durable Goods

The President of Algeria, Abdelaziz Bouteflika, visited Thursday, June 2, the Brazilian stand at ...

A Gallery of Distinguished Brazilians: the Educationalists

“O navio negreiro” (“The Slave Ship”) was written by the poet Castro Alves in ...

Sending Money with Brazil’s Warranty Seal

Brazilians far away from home have a new, easy and secure way of sending ...

Cotton Cultivation in Brazil Falls 28% and Rice 24%

The eighth national 2005/2006 grain harvest survey, released Thursday, July 6, by Brazil’s National ...