Brazil Unveils Ambitious 10-Year Science and Technology Investment Strategy Amid 2026 Budget Cuts

Brazil launches a decade-long plan to double science and technology investments by 2034, while facing 2026 budget cuts in the sector.

    Key details

  • • The National Strategy for Science, Technology, and Innovation (ENCTI) aims to raise sector investments to 2% of GDP by 2034.
  • • Current investment is around 1.2%, seen as insufficient for Brazil's ambitions.
  • • The 2026 budget allocates R$17.8 billion to science, technology, and communications, 5% less than in 2025.
  • • Despite increased allocations, actual investment funding in the Ministry of Science, Technology, and Innovation will decline by 17%.
  • • President Lula criticized the private sector's reluctance to invest, highlighting the state's role in filling investment gaps.

On December 9, 2025, Brazil's federal government revealed its National Strategy for Science, Technology, and Innovation (ENCTI) for 2024-2034, aiming to increase public and private investment in the sector to 2% of GDP by 2034, up from the current 1.2%. The strategy focuses on becoming more self-reliant in critical technologies and boosting reindustrialization to enhance national competitiveness and sovereignty. Minister of Science, Technology, and Innovation Luciana Santos stressed that technical autonomy is essential for Brazil's sovereignty and social development, while President Luiz Inácio Lula da Silva criticized the private sector for its reluctance to invest, saying, "risk capital is afraid of risk," implying that the state must fill investment gaps.

However, the government's ambitious long-term goals contrast with the 2026 budget allocations. The 2026 federal budget for science, technology, and communications totals R$17.8 billion, 5% less than 2025. While the Ministry of Science, Technology, and Innovation (MCTI) received a 14.7% increase in overall allocations, its investment budget is set to decrease by 17%. The Ministry of Communications faces a sharper investment cut of 56%. These cuts come despite 123 parliamentary amendments proposed to support the sector, with 108 individual submissions leading to R$222.1 million in accepted amendments prioritizing scientific research, technological innovation, digital inclusion, and access to information.

Senator Beto Faro, sector rapporteur, noted the challenge of balancing strategic priorities with limited resources amid an imposed 0.8% linear cut on the budget. The budget reports will be voted on by the Mixed Budget Commission before final drafting.

The ENCTI document is open for public consultation until December 20, 2025, marking a pivotal moment for Brazil's science and technology policy. The tension between immediate budgetary constraints and the government's strategic vision highlights the complexity of boosting Brazil's innovation capacity in a challenging economic environment.

This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.