Portuguese Government presents 2027 Budget outlines to parties

The Portuguese government is set to begin presenting the 2027 State Budget outlines to parliamentary parties next week. Finance Minister Joaquim Miranda Sarmento aims for a budget surplus of between 0.3% and 0.5% of GDP to continue reducing national debt.

However, the government warns that proposals from the two largest opposition parties, the Socialist Party (PS) and Chega, could jeopardize this fiscal balance. Specifically, the government estimates that combined measures to reduce VAT on fuel and food baskets would cost approximately 2 billion euros—1.2 billion for fuel and 800 million for food.

Minister of the Presidency António Leitão Amaro noted a visible level of negotiation between the PS and Chega regarding these tax reductions, describing it as a ‘romance’ in Parliament. The government maintains that any new spending or tax cuts must be offset by increased revenue to avoid threatening the country’s public accounts and fiscal stability.