Lisbon, Jan. 6, 2026 (Lusa) - The reductions in personal income tax (IRS) and corporate income tax (IRC) are "flagship policies" of this government that will go ahead, even with the commitment to balanced accounts, and the "necessary budgetary management" will be carried out afterwards, reiterated the Secretary of State for the Budget.
At the presentation of an OECD report on Portugal, held today in Lisbon, the Deputy Secretary of State for the Budget, José Maria Brandão de Brito, said that the government is in line with the OECD's recommendation to "carefully analyse new expansionary budgetary measures".
He argued that the government's budgetary strategy "is based on a series of measures that increase the disposable income of families, especially young people, create conditions for companies to boost investment, strengthen public services and social solidarity, always in a context of budgetary responsibility and balanced public accounts".
Asked about the implementation of measures such as reducing personal and corporate income taxes in a context of fiscal prudence, as recommended by the OECD, José Maria Brandão de Brito pointed out that "since taking office, the government has already demonstrated its determination to keep the accounts in order".
"There were some forecasts that pointed to deficits in 2025, but that will not be the case, so for 2026 we remain determined to generate surpluses," he assured.
The Secretary of State pointed out that this ambition "is not incompatible with the OECD's recommendations," stating that it was possible to "implement the government's main policy measures and maintain balance."
"The reduction in personal income tax and corporate income tax are flagship measures of this government and are measures that are to be implemented, and then the necessary budgetary management will be carried out to reconcile the objectives of slight budget surpluses and public policies that promote the well-being of families," he reiterated.
In its Economic Survey released today, the OECD argued that to sustain growth and continue to reduce public debt, a position of "fiscal prudence" should be adopted, along with structural reforms, namely prioritising public investments that increase productivity and contain long-term spending pressures.
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