The war in Ukraine made Joe Biden’s government present the largest peacetime military budget in its history to Congress: US$ 813 billion (R$ 3.9 trillion this Monday, 28) for 2023, 4.5% more than anticipated in fiscal year 2022.
The US fiscal year comprises the period between October 1 of the current year and September 30 of the following year. Of the total amount, US$ 773 billion (R$ 3.7 billion) is exclusively from the Department of Defense. These are nominal values. In terms of percentage of Gross Domestic Product, there should be a recovery to the 2020 level (3.7%), after a decline in 2021 (3.29%).
“Our budget reflects our National Defense Strategy and this strategy’s focus on China’s challenge. It preserves our preparedness and deterrence against the threats we face today: the acute threat of an aggressive Russia and the constant emergence of threats posed by North Korea. , Iran and extremist organizations,” said Secretary Lloyd Austin.
There is a great emphasis on the development of new weapons: US$ 130 billion (R$ 623 billion) is earmarked for hypersonic missiles, which Russia already uses in the war against its neighbor, and other systems. It’s the biggest expense of its kind in history.
Reflecting the turmoil in the international defense market, with the already announced rearmament of countries such as Germany, the Americans reduced their orders for new fifth-generation F-35 fighters, produced by Lockheed, from 85 to 61.
The reason speculated is to serve the new international customers of the jet more quickly, which for years has been in sales. In addition to Berlin, which announced that it will buy 35 of them, this Monday Canada closed one of the biggest deals of its kind in the world and will acquire 88 F-35s.
Estimated at 19 billion Canadian dollars (R$ 72.5 billion), the negotiation is a major defeat for the Swedes of Saab, who were trying to license the Gripen, a fighter that was purchased by the Brazilian Air Force and will be produced in the interior of São Paulo. . In January, the Gripen had already lost to the F-35 in the great competition to supply 64 planes to Finland.
Such as sheet showed, the US is emerging as the biggest gainers with renewed appetite for defence, even more so since dealings with Russia can now bring the brunt of economic sanctions to potential customers.
Egypt, the third largest buyer of Russian weapons from 2017 to 2021 according to Sipri (Stockholm International Peace Research Institute), has already exchanged a batch of heavy Sukhoi-35S fighter jets for one of the American F-15. In the period, the USA dominated 39% of the world market, and the Russians came in second place, with 19%. For Moscow, the hope is that its two biggest buyers, China and India, will continue to ignore pressure from Washington.
Also as a result of the war on the eastern fringes of NATO (a US-led military alliance), Biden called for an increase of almost 10% in spending on the so-called European Deterrence Initiative, which involves the rearmament of allies on the continent, reaching US$ 4, 2 billion (R$ 20.1 billion). Ukraine alone should earn US$ 300 million (R$ 1.4 billion).
The so-called nuclear triad, which consists of the three vectors for launching atomic weapons (submarines, ground launchers and bombers) will earn US$ 34 billion (R$ 163 billion). The two biggest novelties are the Columbia-class submarines and the B-21 radar stealth bomber, which is due to be taken out of the hangar for ground tests this year.
The US is the undisputed leader in world military spending. According to the annual publication Balanço Militar, from the IISS (International Institute for Strategic Studies, London), in 2021 the US spent US$ 754 billion (R$ 3.6 trillion). It was almost the same expenditure as the next 14 countries in the ranking of expenditures and more than double what the rest of the world spent on defense.
China was second, with US$ 207.3 billion (R$ 994 billion), followed by the United Kingdom (US$ 71.6 billion, R$ 343 billion), India (US$ 65.1 billion, R$ 312 billion) and Russia, with US$ 62.2 billion (R$ 298 billion). Brazil is 16th in the table, with US$ 21.8 billion spent (R$ 104 billion).
Here, however, between 85% and 90% of the amount goes to active and inactive personnel, in addition to funding, leaving proportionately little for investment in equipment. NATO sets 20% of the budget as a healthy target for this type of spending, and in the American case, it was 29.4% in 2021.
