Brazil demonstrates strong intent to increase defense spending and acquisitions through 2030+.Budget Growth: 2026 proposal seeks 6% boost to ~$26.4B. Projections: $25.1B (2026) to $27.2B (2030), ~2% CAGR.Key Investments:
- Novo PAC: ~R$53B for defense innovation, including Gripen fighters, KC-390 aircraft, submarines, frigates, armored vehicles.
- New Industry Brazil (Mission 6): R$112.9B (R$79.8B public) for sovereignty tech (radars, satellites, rockets).
- Exclusions from fiscal caps: Up to R$5B/year extra for strategic projects (2026-2030).
Modernization Focus: Army programs target MBTs, IFVs, cyber/air defense by 2035; ongoing Gripen expansion, Centauro II, Guarani APCs.These initiatives prioritize technology transfer, domestic industry, and enhanced capabilities.