Expenses reach around R$27 billion in 2023; retired professionals cost the government R$32 billion
Government spending on military pensions has reached R$27.1 billion in 2023. There was a 29.9% increase in disbursements by the category compared to 2008, the oldest data available. The amount was R$20.9 billion that year, when considering inflation.
Engaged in a speech on reviewing public spending, the president’s economic team (PT) presented a package that includes changes to benefits and retirement for members of the Armed Forces to save money R$1 billion per year –a figure assessed as timid by financial market analysts.
Despite the increase in costs over 15 years, expenses have been falling since 2019. Read below how the figures behaved:
The data are from prepared by the government. The page shows that pensions represented a cost of R$21.3 billion in 2024 from January to October.
RETIREMENT
Government expenses grew 18.2% in 15 years with retired military personnel, reservists and retirees. It went from R$27.3 billion in 2008 to R$32.3 billion in 2023.
There was a drop in disbursements from 2020 to 2023, similar to what was observed in retirements. Spending in the first 10 months of 2024 totaled R$25.5 billion. Below, the evolution (click to open in another tab):
IMPACT FOR MILITARY
Read below how the government wants to cut spending in relation to the group:
- Pension – the minimum age will be set at 55 years. Today, there is no minimum wage, just length of service (35 years for those who entered after approval);
- “fictional death” – it will end. It occurs today when soldiers are considered unfit for service and are expelled. They are considered dead, but their family members maintain the benefits, receiving the salary;
- contribution to the health plan – the amounts charged to all members of the Armed Forces will be equalized. Today, there are those who pay up to 3.5% of their salary. But this percentage is lower in several cases;
- pension transfer – will be extinguished. Although this transfer ended in 2001, those who had previously contributed continued to maintain the benefit. For soldiers who contributed, in the event of death, the pension goes to the widow. If the widow dies, the daughters receive it. If one daughter dies, the other gets the full share. This is what we want to end now.
TAX PACKAGE
The federal government detailed on Thursday (Nov 28) the public spending review package. The economic team wants to change the rules on the minimum wage, social benefits and military retirement to save R$327 billion in 6 years.
The measures are not immediate and may undergo changesbecause they still need Congressional approval. They should only come into effect from 2025. Understand what does Lula’s team will try to score.
Read more details about the measures designed by the government.
The central objective of the package is to balance public accounts and meet fiscal targets. The government wants spending to equal revenues in 2025 (a the deficit is zero). In the following years, the target is to end up with accounts in the black. In practice, it is necessary to increase revenue and reduce expenses. Little was done on the side of the 2nd option, even with Lula 3 almost halfway through.
