Lisbon, Oct. 27, 2025 (Lusa) - The Portuguese Prime Minister warned on Monday that the margin for changes to the Government’s proposed state budget for 2026 “is very narrow” and called on the opposition to “let the Government work” by approving the draft bill.
Luís Montenegro was speaking at the opening of the first reading debate on the 2026 draft state budget proposal, which is taking place between today and Tuesday in the parliament in Lisbon.
In an initial speech in which he used 21 of the 70 minutes available to the Government for the first day of debate, Montenegro said that “ the margin for budgetary changes is clearly small, very small indeed”.
"This will require a high sense of responsibility from everyone in the parliament in assessing and deciding on this state budget proposal," he said, adding that we are living "in an international context of uncertainty and insecurity".
The prime minister argued that “there is only one alternative for the country’s stability, for economic stability, for financial stability, for political stability: to approve the draft state budget for 2026”.
‘'We all know that there is much to be done, but we have also all heard the firm and repeated voice of the Portuguese people. The firm and repeated voice of the Portuguese people has said and continues to say: let the government work. And I would add: with all our differences, in democratic discussion, let us all be part of the work for the future of Portugal,’’ he urged.
The prime minister reiterated that the PSD/CDS-PP coalition Government “has an agenda to transform Portugal” and cited the most recent local government election results to argue that this agenda has the support of the Portuguese people.
“In the recent local government elections, the Portuguese people showed that they are aligned with the country’s major objectives and that they are counting on all levels of public authority to achieve them,” he said.
As provided for in the 2026 state budget proposal, Montenegro stated that “ the country will continue to grow above the European average and ensure the viability of its public accounts”.
“In 2026, we will have economic growth of 2.3%. Employment will be at its highest, with growth of 0.9% in 2026 and the unemployment rate at a historic low of 6% in 2026 (...) And a budget surplus of 0.1% which, if we exclude court decisions against the State, recovery and resilience plan loans and some extraordinary supplements, would be almost 1%,” he said.
Montenegro also highlighted the projected reduction in the debt ratio “to around 88% of GDP”, stressing that “this will be the lowest figure since 2009 and, for the first time in 16 years, the country will once again have a public debt below 90% of Gross Domestic Product (GDP)”.
"We must look at this with hope, with optimism, but also with a sense of responsibility," he said.
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