Brazil’s proposed $23.7 billion defence budget targets GDP-linked military funding
If approved, the budget would provide $253.2 million to reequip and modernise the FAB’s fleet of F-39 Gripens. (Photo: Isac Nóbrega/PR)
Brazil’s 2025 budget proposals will see a 5.9% increase in defence spending, with funds allocated for key programmes including the procurement of helicopters, armoured vehicles and nuclear-powered submarines, despite looming fiscal challenges.
In late August, President Luiz Inácio Lula da Silva’s administration submitted the Fiscal Year 2025 budget request (known in Brazil as ‘PLOA’) to the National Congress. The proposal, still subject to changes by congresspeople, estimated a total revenue of more than US$1 trillion for the coming year.
Once approved, the PLOA will be enacted as the Annual Budget Law (LOA). The LOA is one of the three foundational instruments of public sector planning in Brazil, alongside the Multi-Year Plan (PPA) and the Budgetary Guidelines Law (LDO).
The Brazilian Ministry of Defense (MD) is set to receive $23.7 billion in funding,
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