Lula wants to invest in the military industry in Brazil using money from the BNDS

Lula government

The proposal will soon be presented to the Ministry of Defense and government command

The National Bank for Economic and Social Development (BNDES) confirmed last week that it is studying alternatives to support the Brazilian defense industrial complex. According to a note, the possibility of using the future Eximbank, a financing company for promoting exports, in this program is also being evaluated.

The proposal will soon be presented to the Ministry of Defense and government command. The movement represents yet another of Lula 3’s moves to develop the defense industry — which, according to government officials publicly state, is one of the priorities of the industrial plan.

The government’s National Industrial Development Council (CNDI) expresses this priority in one of its missions. Furthermore, among the axes of the New PAC, the management’s main investment instrument, Defense is the fourth with the most resources (around R$53 billion planned).

The Budget for 2024 only laterally increased the value of the Budget aimed at the Ministry of Defense — which went from R$122.6 billion to R$126.1 billion. With the limitations imposed by the new fiscal framework on budget spending, investments via BNDES appear as an option.

All amounts dedicated to defense in the New PAC originate from the public budget — with no mention of contributions from state-owned companies. The majority of this investment will be directed to research, development and acquisition for the Navy, with R$20.6 billion; the Air Force will have R$17.4 billion, the Army, R$12.4 billion; the General Staff, R$2.4 billion.

Investments include the construction of a nuclear submarine, the acquisition of cargo aircraft, Gripen fighters, light and medium-sized helicopters and patrol ships, armored vehicles, and the implementation of border control systems.

*With information from CNN Brasil

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