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Brazil proposes 2027 defense budget with 73% for pay and pensions

The proposal awaits congressional approval and earmarks 8.6% for investment as Brazil pursues aircraft, warship and submarine programs.

By Tomasz Lindqvist

Illustration of a military aircraft, frigate and submarine beside budget documents
Photo: MercoPress

Brazil’s proposed defense spending for 2027 totals R$147.68 billion, equivalent to about US$27 billion at current exchange rates, with salaries, retirement benefits and pensions accounting for 73%, according to the budget bill submitted to Congress.

Lawmakers must approve the proposal, which assigns about R$12.7 billion to investment and R$21.7 billion to operating expenses. Investment represents 8.6% of the planned budget.

Several military procurement programs remain under consideration. Defense analyst Andrei Serbin Pont, reviewing the projects for Infobae, said the Brazilian Air Force had expressed interest in June in purchasing 20 additional Gripen E/F fighters from Saab. Brazil already has 36 under contract, but the additional order is unconfirmed.

The Navy signed an April 24 memorandum of understanding with Embraer and Germany’s TKMS for four additional Tamandaré-class frigates. It is also weighing larger vessels from France, Italy, South Korea or the United Kingdom.

Funding difficulties have reportedly pushed the nuclear-powered submarine’s launch date back to 2038 from 2034, according to Serbin Pont. The Army has again delayed choosing new armored vehicles and a medium tank, while negotiating an ATMOS 155 self-propelled howitzer purchase through a consortium involving Brazil’s Avibras.

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