Portugal government approves 2027 budget bill

Portugal’s government approved the 2027 state budget proposal at a cabinet meeting on Thursday and will submit it to parliament later in the day, launching a key political process for the country’s fiscal plans. The bill matters because it sets the framework for public spending and taxation and now appears likely to pass its first parliamentary hurdle.

Finance Minister Joaquim Miranda Sarmento is due to hand the proposal to parliament speaker José Pedro Aguiar-Branco at 2:15 p.m., followed by the usual press conference at 4 p.m. in Lisbon, according to the Finance Ministry. By law, the budget had to be submitted by October 10, but because that date falls on a Saturday this year, the constitutional deadline moved to Monday, October 12.

The government had initially planned to deliver the document a day later, but cabinet approval and submission to parliament are now taking place on the same day. ECO previously reported that Socialist Party leader José Luís Carneiro would propose that his party abstain in the general vote after receiving assurances from Prime Minister Luís Montenegro on four conditions set by the Socialists. The party’s national secretariat later reaffirmed that position and said it does not expect any “surprise measures” that would change its vote.

The parliamentary process will begin with a hearing for the finance minister on October 23, followed by the labour minister on October 26. Lawmakers are scheduled to debate and vote on the bill in general terms on October 27 and 28, while the deadline for parties to submit amendments is November 6.

If approved at that stage, the budget will move to detailed committee scrutiny from October 29 to November 24, when the final overall vote is scheduled. The final text will then go to the president, who can sign it into law, veto it or send it to the Constitutional Court for a prior review. It must be promulgated to take effect on January 1, 2027.

Originally published at Eco.pt