US CBO projects growing debt, interest payments over next decade

by Jeremiah Cushman

US Congressional Budget Office's 10-year projections for US defence spending, interest payments, and total deficit. (Congressional Budget Office/Janes)

The Congressional Budget Office (CBO) released its regular 10-year budget and economic report on 7 February, projecting growing deficits, public debt, and costs attributable to an ageing population while revenue remains largely the same by 2034.

The CBO emphasised that its forecasts, based on legislation enacted through 3 January 2024 and economic data as of 5 December 2023, assume current laws on taxes and spending remain generally unchanged.

This budget deficit is anticipated to increase from USD1.6 trillion in fiscal year (FY) 2024 to USD2.6 trillion in FY 2034, or from 5.6% of GDP in FY 2024 to 6.1% of GDP in FY 2034, significantly larger than the 3.7% average over the past 50 years, the CBO said.

The deficit projections are smaller than in the CBO's May 2023 report due to a USD2.3 trillion reduction in discretionary spending over the 10-year period from the combination of the Fiscal Responsibility Act (FRA), which was signed into law on 3 June 2023, and the Further Continuing Appropriations and Other Extensions Act of 2024.


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Canada unveils CAD33.8 billion defence budget for 2024–25

by Jeremiah Cushman

Actual and planned Canadian defence spending by category from 2021–22 to 2026–27. (Janes)

The Canadian government released its fiscal year (FY) 2024 defence budget on 16 April. The document projects spending of CAD33.8 billion (USD24.6 billion) in 2024–25, including adjustments from the Budget 2023 Refocusing Government Spending Exercise and incremental funding in the 2024 budget, although it warns that forecast amounts may change as programmes move through implementation. This is an increase from the forecast CAD29.9 billion spending in 2023–24, according to the document.

The 2024–25 main estimates produced by the Treasury Board projected defence spending of CAD30.6 billion, a small increase from the latest spending estimate for 2023–24, which totalled CAD30.3 billion. This is a 14% increase over the initial 2023–24 main estimate of CAD26.5 billion, according to Treasury Board figures. Expenditures in 2022–23 totalled CAD26.9 billion.


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FIDAE 2024: Embraer sees market for 490 Super Tucanos

by Zach Rosenberg

A Nigerian A-29 Super Tucano is pictured here. Embraer Defence CEO Bosco da Costa sees potential for up to 450 Super Tucanos over 20 years, including from Africa. (US Africa Command Public Affairs)

Embraer Defence & Security sees a market for up to 490 A-29 Super Tucano trainer and attack aircraft over the next two decades, Embraer president and CEO Bosco da Costa Jr told Janes on 10 April at the FIDAE 2024 airshow in Santiago, Chile.

“We are in touch with several countries around the world, not only here in South America, but we have some potential [customers] in Africa, in Asia, and in Europe as well,” said da Costa. “We are in advanced conversations with countries in Europe [and] in advanced conversations with countries in Asia. I cannot disclose the countries because the defence procurement process does not allow us to do that. But I assure you that we are now in a final stage in some of them.”


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IT²EC 2024: Saab to continue supporting British Army live training

by Olivia Savage

Saab has been contracted to upgrade the army's live training capability. Pictured are troops practising their debussing drills from a Saab DFWES-equipped Warrior infantry combat vehicle in Alberta. (Janes)

The British Army has signed a GBP60 million (USD75.7 million) three-year support contract with Saab to improve its live training capability.

The contract – Instrumented Live Training (ILT-D) – is replacing the existing Direct Fire Weapon Effects Simulator (DFWES) contract with Saab and will involve modernising its live training capabilities to improve interoperability and address obsolescence.

ILT-D is essentially a mid-life upgrade of the DFWES capability that will comprise upgrading and providing the latest soldier and vehicle training systems as well as EXCON software to ensure it remains relevant to the army's evolving training needs and is interoperable with its allies, Joakim Alhbin, the vice-president of Training and Simulation at Saab, informed Janes and other media representatives at the International Training Technology Exhibition & Conference (IT²EC) 2024.

DFWES is a laser-based Tactical Engagement Simulation (TES) capability that simulates direct and indirect fire.


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https://www.janes.com/defence-news/industry-headlines/latest/us-cbo-projects-growing-debt-interest-payments-over-next-decade

The Congressional Budget Office (CBO) released its regular 10-year budget and economic report on 7 F...

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