Portugal's 2027 state budget moves to committee stage as the PS abstains

Second day of debate

The debate on the generality of Portugal's 2027 State Budget resumes on 28 October at 10:00, with more than three hours of speeches scheduled before two further hours of closing remarks in the afternoon. The session ends with a vote. Because the PS has announced it will abstain, the government's proposal is set to pass to the specialty stage, so little uncertainty surrounds the outcome.

Finance minister's defence

Finance minister Miranda Sarmento opened the second day by stressing tax cuts and a rise of more than 10% in real wages between 2024 and 2026, among other indicators. He also said pensions have been revalued more this century than ever before.

“Never this century have household incomes grown this much in Portugal.”

Sarmento said the government had sought to recover what he called eight lost years of Socialist government, pointing to a resumption of public investment. He argued that the budget has to leave Parliament the same as it entered.

Opposition focus and next steps

On the first day, 27 October, Prime Minister Luís Montenegro defended what he called 'um bom Orçamento', but opposition parties concentrated mostly on changes to rental legislation and on police conduct at demonstrations supporting the right to housing. The discussion on the previous day therefore dwelt more on housing and protests than on the government's proposal itself. Montenegro has guaranteed that there will be room for opposition proposals before the budget is finalised. The final vote is scheduled for 24 November.