Brazilian President Jair Bolsonaro has approved a freeze of BRL1.364 billion (USD250 million) for the defence budget as part of the revised and delayed 2021 federal budget law that was enacted on 22 April.
The money remains in the federal government’s budget. However, it is locked down as “contingency funds” that can be spent only if the economy improves or new sources of revenue are found.
The final version of the budget law, which was published in the Official Federal Gazette on 23 April, includes a reduction in budget allocations of BRL19.767 billion as well as a freeze of approximately BRL9.285 billion on expenditure.
The country’s BRL4.16 trillion budget, which was first approved by the National Congress on 25 March, includes BRL79.79 billion for the Ministry of Defence, according to official data: a slight decrease compared with the BRL82.53 billion figure of 2020. This includes BRL1.55 billion for the F-39E/F Gripen fighter programme, BRL626.9 million for the KC-390 Millennium airlifter programme, BRL251.9 million for the acquisition of helicopters, BRL388 million for the Guarani wheeled armoured vehicle programme, BRL292.2 million for the Navy Nuclear Programme, BRL1.62 billion for the Submarine Development Programme, and BRL365.9 million for the Integrated Border Monitoring System.
Empresa Gerencial de Projetos Navais (EMGEPRON), a state-owned company, is receiving around BRL1.5 billion for the Tamandaré-class frigate programme (PFCT), which calls for the construction of an initial four MEKO A-100MB frigates in Brazil, as well as BRL90 million to fund the acquisition of one Antarctic support ship.
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