Brazil Defence Spending Gets R$2.5 Billion Outside Fiscal Cap in 2026

Key Facts

—2026 carve-out. An extra R$2.5 billion (US$460 million) in defence investment will be excluded from Brazil’s fiscal rules next year.

—Multi-year plan. A law authorises up to R$5 billion annually for six years, totalling R$30 billion, for strategic projects outside the spending cap.

—Frozen funds. The move aims to recover R$3 billion in blocked Novo PAC (Growth Acceleration Program) funds for Army, Navy, and Air Force projects.

—Legislative status. The Senate approved the bill (PLP 204/2025) on October 22, 2025, and the Chamber of Deputies has not yet agreed to a July urgency vote as the bill is still pending review.

Brazil Defence Spending Gets R$2.5 Billion Outside Fiscal Cap in 2026

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