Brazil's Ministry of Defense is set to receive the sixth-largest budget in the federal government in 2027. The projection is in the annual budget bill (LOA) sent to Congress this week, which allocates about R$ 148 billion to the ministry. President Luiz Inácio Lula da Silva has cited the topic repeatedly amid international tensions and friction with the United States, according to news portal G1. The report ran alongside images of a military exercise to protect the Amazon held in Boa Vista, in the northern state of Roraima.
Of the total, R$ 108 billion covers payroll and social charges for active-duty troops, retirees and pensioners of the Army, Navy and Air Force. Another R$ 21.7 billion goes to current expenses and R$ 12.7 billion to investment, about 8.6% of the ministry's budget. G1 reports that the Defense allocation exceeds the combined budgets of 17 ministries, including Justice and Public Security (R$ 27.5 billion), Transport (R$ 19.4 billion) and Science and Technology (R$ 15.9 billion). Data from the Transparency Portal, run by the federal Comptroller General's office (CGU), list 365,000 active-duty service members, 268,000 pensioners and 91,000 retired officers.
Lula has called for higher defense spending in recent months. In June, he said he would expand the budget because the world is "full of crazy people," adding that he does not want war but does not want to be "caught by surprise." In July, he said the armed forces need to be "prepared" and pointed to the interest of the United States, Russia and China in rare earths and critical minerals. G1 links the push to the war in the Middle East and the U.S. decision to designate the Comando Vermelho and PCC criminal organizations as terrorist groups.
In August, Defense Minister José Múcio Monteiro said Brazil would be unable to fight the United States militarily in a hypothetical invasion scenario.
"I would open the gate, because we have no equipment to face them and no money to fix the gate. I prefer to open the gate," Múcio said at an event, drawing laughter from the audience.
Where the money goes
The investment budget under the PAC, Brazil's flagship public investment program, sets aside R$ 10.2 billion for 16 defense projects in 2027. The largest single line is the FX-2 program for the Gripen fighter jets: R$ 2.89 billion for aircraft, weapons, support and associated components under the contract with Swedish manufacturer Saab, according to Revista Fórum. The plan also includes R$ 571.8 million for the Embraer KC-390 cargo aircraft, with one more plane due for delivery in 2027, and R$ 337.6 million to modernize the A-29 Super Tucano fleet.
At the Navy, the nuclear program receives R$ 1.4 billion, including the Labgene laboratory in Ipero, Sao Paulo state, a land-based prototype of the propulsion plant for Brazil's future nuclear-powered submarine. The submarine itself has about R$ 400 million budgeted (R$ 388.8 million in the bill). Through May this year, the program had already spent R$ 5.8 billion of a total R$ 22.6 billion, with completion scheduled for 2037. The Tamandare-class frigate program gets R$ 900 million to build four ships.
At the Army, highlights include R$ 1.02 billion for the armored forces program, with 116 vehicles due in 2027, and R$ 671.4 million for the ASTROS-FOGOS rocket and missile system. The MICLA long-range missile project receives R$ 11 million. The Sisfron border monitoring system will get R$ 467 million, and Army aviation and drones R$ 520 million.
The next step belongs to Congress. The joint budget committee will appoint a rapporteur for the 2027 bill, and both chambers must approve the text for the budget to take effect on January 1, 2027.