Brazil cuts defence budget but purchase of 36 new jets remains on the agenda

Wednesday, February 16th 2011 - 13:31 UTC

Full article 18 comments

The French Rafale fighter from Dassault Aviation

Brazil's government will cut 4,2 billion Brazilian Real (approximately 2.4 billion USD) from its 15.17 billion defense budget this year under proposed fiscal tightening, Defense Minister Nelson Jobim announced this week.

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 Real 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 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.

Categories: Politics, Brazil.

Tags: Brazil, Dassault Aviation, Defence budget, Nelson Jobim, Rafale.

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Zethee
I was thinking about this. I am by no means an expert on Brazilian defence so i could be wrong.

But..Brazil is a large country. Isn't 36 jets rather a small ammount? I would have thought with a jet like the US one, they could get atleast 60 jets for the same price?

I'm speaking just for defence, i understand how the french jet could boost the economy should any other south american nation decide to buy the jets.
Feb 16th, 2011 - 01:44 pm 0
Fido Dido
Isn't 36 jets rather a small ammount?

You're right, but by reading mercopress,you don't always get the full story. Why, I have no idea. They now have a fleet of 100-110 fighter jets, but they are old. the 36 jets is just the begin. This is a begin deal that will eventually lead to a total of 100-110 fighter jets.

What will close the deal is a strong agreement/guarantee of transfer of all technology what they have from the French, and by following US politics, they might get a stronger deal from the Obama Administration, and incredible from strong supporters of the Republican party like the US Chamber of Commerce and of course BOEING and GE (Obama's best friend and economic adviser Jeffrey Immelt). They will travel with Obama in March this year to Brazil. The mission is clear: Get closer to Brazil and humiliate France softly. I think that Brazil will go eventually with the French and the US ending up empty.
Feb 16th, 2011 - 03:11 pm 0
Redhoyt
We've been humiliating France for centuries :-)
Feb 16th, 2011 - 03:13 pm 0

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