Deadline Looms: Over 1,100 Proposals Flood Portugal's State Budget Debate

Deadline for State Budget Amendment Proposals Ends Today

Parties with parliamentary seats have until 6:00 PM to submit their proposals for changes to the State Budget. This Friday also marks the end of specialized hearings, featuring the Minister of Labor, Solidarity, and Social Security, Maria do Rosário Palma Ramalho, and the Minister of Finance, Joaquem Miranda Sarmento.

As of 8:00 PM on Thursday, according to Lusa agency counts, nearly 1,100 proposals had been submitted. At the same time last year, there were 300 more proposals.

Key Party Proposals

• Chega leads with 351 proposals out of a total of 1,079. André Ventura had previously hinted at up to 600. Their measures include a two-percentage-point reduction in the state surcharge on Corporate Income Tax (IRC) and a permanent 1.5% increase in pensions. Chega is open to collaborating with other parliamentary groups on permanent increases.

• The PS has not yet submitted any proposals, waiting until the final day. However, Socialist Secretary-General José Luís Carneiro announced intentions to use the extraordinary surplus in the Social Security budget for permanent increases in the lowest pensions, which the government rejects. Additionally, PS aims to use any excess revenue from the Petroleum Products Tax (ISP) in 2026 to reduce VAT on basic food items.

• On the right, the Iniciativa Liberal submitted 84 proposals, focusing on tax matters. They propose repealing the additional Municipal Property Tax (IMI), reducing IRC to 18%, and lowering VAT on construction to 6%.

• From the left, Livre has put forward 140 proposals, including lowering the maximum VAT rate from 23% to 21%, raising the minimum wage to €1,250 over the next four years, and implementing a four-day work week.

• The PCP advocates for a permanent 5% increase in pensions and raising the minimum wage to €1,050. They also seek to penalize taxation for large economic groups while favoring micro and small enterprises, and introduce reduced IRS tax brackets. They have submitted over 250 proposals in total.

• The Bloco de Esquerda proposes creating a support fund for municipalities affected by the six dams sold by EDP, funded by taxes paid by the company.

• The PAN supports a program for housing cooperatives and reducing VAT on animal health and food.

• The JPP has submitted a single proposal to adapt the TVDE (ride-hailing) regime to the specificities of the autonomous regions.

• The three PSD deputies from Madeira submitted three proposals, including extending the Madeira Free Trade Zone fiscal regime until 2033.

• PSD and CDS-PP, government partners, presented a couple of proposals to correct oversights in the version of the Budget approved in general.

Upcoming Schedule

From November 20 to 26, discussions will take place in the plenary session in the morning, with votes in the Budget, Finance, and Public Administration Committee in the afternoon. The final global vote is scheduled for November 27.

In 2024, a record 2,123 amendment proposals were submitted for the 2025 State Budget.

Source: Lusa