• Categories
  • Archives

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Your email address will not be published.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

Who’ll Care for Them?

Under ex-President Fernando Collor de Mello the indigenous health care system was decentralized. Since ...

Brazilian Highschoolers to Get Free Textbooks

In the past, the Brazilian government has distributed millions of textbooks to elementary school ...

Brazil Says New Tax on Foreign Investment Is to Avoid Bubble

Dilma Rousseff, chief of staff of Brazilian president Luiz Inácio Lula da Silva and ...

Brazil Firm Buys Chilean Abattoir Certified to Export to US, EU and China

Marfrig, a leading Brazilian meat industry group, acquired an abattoir in Tierra del Fuego ...

Sea for the Well-off

Mardoqueu is made out of fine French bread dough. White and lean like a ...

Can Santa’s Reindeers Survive Brazil’s Hot Christmas?

Even in the scorching heat of Rio’s summer, Santa makes his appearance to bring ...

Brazil Beefs Up Cuba Ties with Deals and US$ 1 Billion Help Package

Cuban leader Fidel Castro is lucid and healthy enough to resume a political role ...

Already World’s Number 1, Brazil Expands Beef Export

Egypt and Saudi Arabia were among the ten main buyers of Brazilian raw cattle ...

Brazil Wants South Agenda to Dominate Doha’s G-77 Meeting

The reform of the United Nations (UN) and negotiations at the World Trade Organization ...

Chinese Airline Gets First of Five Brazilian Jets Ordered

Brazilian aircraft maker Embraer delivered, August 28, the first of five Embraer 190 jets ...