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Lula government announces investments of R$52 billion to boost the country's weapons industry through BNDES
Lula's government is intensifying its efforts to develop Brazil's arms industry, with a firm focus on the National Bank for Economic and Social Development (BNDES) as its main source of financing. With the launch of the ambitious “Novo Pac” plan, which foresees a total investment of R$52 billion in defense, the government intends to boost the sector. Given the budget restrictions imposed by the new fiscal framework, collaboration with BNDES emerges as a strategic option to achieve these goals.
Lula Government and the Strengthening of the Defense Industry
Lula's government, in its third term, is taking bold measures to strengthen Brazil's defense industry. This movement is an essential part of its industrial plan and is supported by the National Industrial Development Council (CNDI). The numbers speak for themselves: the fourth largest amount of resources from the New PAC, around R$53 billion, will be directed to Defense.
The role of BNDES in Lula's defense initiative
With the 2024 Budget demonstrating limited growth for the Ministry of Defense, the BNDES emerges as a viable alternative to finance defense projects. The entire amount allocated to the New PAC comes from the public budget, without the need for contributions from state-owned companies.
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Planned investments include construction of a nuclear submarine, acquisitions of aircraft, such as freighters and Gripen fighters, as well as helicopters and patrol ships. Investments in armored vehicles and border control systems are also planned.
Investment in Defense
Experts emphasize that although defense spending is substantial, it has a significant positive impact on the economy. Military industrial development often results in technological advances that benefit society at large. Investments in the aerospace field, for example, can lead to advances in monitoring CO2 emissions, with implications for agriculture and environmental preservation.
Furthermore, sectors such as steel, chips and microchips, biotechnology, pharmaceuticals, cybersecurity and artificial intelligence can reap the benefits of investments in defense, generating advances in civil technologies.
Stimulating Employment and Industry
Investment in defense not only drives technological advancement, but also creates new jobs, stimulates employment and generates income for industry. The Brazilian government's initiative to prioritize these investments is seen as an important step towards strengthening the national economy.
Experts argue that investment in defense should extend beyond the weapons industry. Strategic projects, such as development in the space area with launch vehicles, should also receive attention to further boost Brazil's technological capacity.
