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:

Ads

You May Also Like

Brazilian Police Sweep 13 States in Search of Software Pirates

About 350 Brazilian federal agents swung into action today in a multi-state operation to ...

Brazil’s Ethics Council Gives Whistle Blower Congressman the Boot

The Ethics Council of Brazil’s Chamber of Deputies voted unanimously, 14 to 0, in ...

Criminals Have Already Killed 90 Policemen in São Paulo, This Year

Brazil announced on Tuesday it will create a new police agency, boost surveillance operations ...

Russia Relaxes Ban on Brazilian Meat

Russia lifted the ban on beef and pork imports from six Brazilian states, which ...

Brazil Finds Out Principles for Responsible Investing

The United Nations Environment Program (UNEP) launched, Wednesday, May 10, in Rio, Brazil,  the ...

Brazil Advances in 2005, But It’s Still Far from Investment Grade

Brazilian President Luiz Inácio Lula da Silva’s economic team ended 2005 celebrating the indicators ...

Jobs in Brazil Grow for Fifth Month in a Row

The level of employment in Brazilian industry grew 1% in September, compared with August. ...

Brazilian Expats Send US$ 6.4 Bi Home, Same as Soybean Exports

The Inter-American Development Bank (IADB) wants to encourage people who receive money from relatives ...

US Fills a Plane with 300 Brazilians and Ship Them Back Home

Members of Brazil’s Joint Congressional Investigation Committee that is looking into the emigration of ...

World’s Admiration Ranking Puts Brazil’s Lula in 11 and Bush in 16

Nelson Mandela, Bill Gates, and the Dalai Lama came on top as the most ...