Portuguese Finance Minister Joaquim Miranda Sarmento presented the government’s 2027 state budget proposal to Parliament on Thursday, triggering a political dispute over its approval between the ruling Social Democrats, the Socialist Party (PS), and the far-right Chega.
Sarmento urged the PS to uphold its earlier commitment to abstain, ensuring the budget’s passage, and warned against amendments that could disrupt its fiscal balance. “The budget that enters has a surplus,” he told SIC. “It is very important for the country, given the international situation, that the budget that leaves Parliament maintains this balance of public accounts and debt reduction. To deviate from this would be a huge irresponsibility that the country would pay dearly for.”
PS deputy António Mendonça Mendes responded that the party still had doubts, despite an initial pledge of abstention by PS lawmaker José Luís Carneiro. “It’s a preliminary analysis,” Mendes said. “The budget was submitted about three hours ago. We’re not sure everything is included, but the government will have the opportunity in the regulatory hearings to confirm that the demands placed by the Socialist Party are effectively met.” PS leader Pedro Nuno Santos called a national committee meeting for Saturday to review the budget and a new urban rental regime.
Chega leader André Ventura criticized the budget as inadequate for addressing rising living costs and accused the PS of enabling it without negotiating meaningful measures. “It’s a bad budget that, due to the fault and responsibility of the Socialist Party, not only has no story but has truly left the Portuguese in the lurch,” Ventura said. Chega has not yet announced its voting position.
Sarmento’s appeal to the PS came after former Banco de Portugal governor Mário Centeno publicly criticized the budget’s fiscal approach, though the minister did not name Centeno directly.
