President Luiz Inácio Lula da Silva (PT) and the Minister of Defense, José Múcio Monteiro, have a meeting scheduled for this Wednesday (13) with a delicate topic on the agenda: the inclusion of military retirements and pensions in the cut plan of government spending.
Until now, the Defense portfolio had been left out of other budgetary blockages. However, the situation could change, surprising military personnel who did not expect to be targeted for cost containment.
Military pension deficit in focus
The biggest expense in the Ministry of Defense is military pensions. According to data from the Federal Audit Court (TCU), while a retired or civilian pensioner causes a per capita deficit of R$9,400 per year, each military member represents a deficit of R$159,000.
In 2023, according to a TCU report, the fund that supports military retirements and pensions had a deficit of R$49.7 billion in 2023.
The report shows that revenues from military pensions can only cover 15% of all spending on benefits in the category. It is the second worst regime in terms of the relationship between the volume of revenue and expenses.
an entity that monitors public accounts in the United States, reveals that the payroll of the largest military power on the planet consumes 22% of the total budget, three times less than Brazilian defense spending on members of the Armed Forces.
Currently, 78% of Brazilian military spending is allocated to active, reserve and pension personnel. In 2024, this account will total R$77.4 billion.
Resistance and future impacts
Any change to military benefits is likely to face strong resistance in the National Congress. Even if the measures move forward, it is likely that the effects will only affect future entrants to the Armed Forces, with no immediate impact on the public budget.
Minister José Múcio has played a crucial role as a bridge between the government and the Armed Forces, seeking to pacify existing tensions. So far, he has managed to keep Defense away from government contingencies, claiming that the department already has an outdated budget,
The Armed Forces justify their spending by arguing that all military personnel, active or reserve, contribute to the pension until death, unlike the general regime. Furthermore, they state that the social protection system of the Army, Navy and Air Force does not rely on employer contribution revenue.
