Portugal's 2026 State Budget Debate Kicks Off: Key Votes and Controversies Unveiled

Debate Begins on Portugal's 2026 State Budget

The Portuguese Parliament starts debating the government's proposal for the 2026 State Budget today at 3:00 PM, with an opening speech by the Prime Minister.

Schedule and Discussion Details

• The debate is allocated 249 minutes, but parties can adjust timing, potentially moving parts to Tuesday.
• The first round of clarifications begins with the main opposition party, Chega, followed by other political groups in descending order, each with up to five minutes.
• Discussions resume on Tuesday with plenary sessions at 10:00 AM and 3:00 PM.
• A new schedule for Tuesday includes over four hours of debate and 109 minutes for closing arguments from all parties and the government, ending with a vote.

Political Support and Opposition

• Support from PSD and CDS-PP, along with the PS's announced abstention, ensures approval in this initial phase.
• The vote from Chega, the second-largest parliamentary party, remains uncertain.
• On Sunday, the PCP promised a "firm fight" against the budget, criticizing PSD, CDS-PP, Chega, IL, and PS for ignoring the country's needs.
• The BE will vote against the proposal, while the PAN will abstain as a sign of openness to dialogue.

Economic Concerns and Government Defense

• Last Thursday, the Council of Public Finances (CFP) raised doubts about the sustainability of the 0.1% surplus forecasted in OE2026, noting it relies on temporary measures and extraordinary revenues.
• In Brussels, Prime Minister Luís Montenegro defended his government's financial credibility, stating that all targets have been met or exceeded and urging verification of results.

Key Dates and Process

• The final global vote is scheduled for November 27.
• Controversial issues like labor law and Social Security were excluded from the budget, a condition set by PS for viability.
• After the general vote, detailed analysis begins on Wednesday in the Budget, Finance, and Public Administration Committee (COFAP), with hearings of all ministers and institutions like the Court of Auditors, Economic and Social Council, and CFP.
• Hearings end on November 7, the deadline for parties to submit amendment proposals.
• From November 20 to 26, discussions occur in the morning plenary, with votes in COFAP in the afternoon.

Economic Projections

• The government forecasts GDP growth of 2% in 2025 and 2.3% in 2026, aiming for surpluses of 0.3% of GDP in 2025 and 0.1% in 2026.
• The debt ratio is expected to decrease to 90.2% of GDP in 2025 and 87.8% in 2026.