“The PS took responsibility. You cannot distort the OE now”

O minister of Finance commented, on Thursday evening, the delivery of the proposal of the State Budget for 2027 and took advantage to appeal to “responsibility” by the Socialist Party for the document to be made possible, not only in general, but also in specialty. 

Joaquim Miranda Sarmento said, on the SIC antenna, that we need to go further: “The PS assumed the responsibility to make it possible. You cannot now distort the state budget. It is very important for the country to maintain the balance of public accounts.”.

This is the announcement made by the Socialist Secretary-General, José Luís Carneiro, last week, to take account of the decision to propose to the party bodies that the Socialists make the OE possible through abstention.

However, today, after the presentation of the OE proposal PS expressed doubts as to whether the Government had fulfilled two of the conditions that put to enable the document: investments for completion of PRR projects and for recovery of storm damage. Nevertheless, it did not call into question the abstention of the party in the general budget vote.

“English are getting more pay and are paying less IRS”

According to Miranda Sarmento, the Portuguese are saving “large hundreds” of euros per year since 2023, due to the relief of the tax burden driven by the government. According to Miranda Sarmento, this State Budget translates into “more salary” and “pay less IRS”.

“ Monthly there has been a relief in the tax burden of IRS. Between 2024 and 2026, real net wages rose by about 15%. The Portuguese are having more salary and are paying less IRS ", said.

He also recalled that the government has already lowered the IRS six times since April 2024, which, in the accumulated amount, means “hundreds of savings per year” compared to 2023. “We are talking about EUR 2.8 billion less than 700 million of the Young IRS enlargement,” he said. “When we look at the accumulated, there is a significant difference and the Portuguese have felt it”.

The governor also acknowledged that the year was “extremely difficult”, but ensured that the budget balance will be “balanced”.

Fuels? Government prefers “to give more income to families”

Next year, the Tax on Fuels (ISP) should make the state a record revenue of €3.8 billion, but the minister rejected this as a result of a reduction in the discount that has been applied, but rather of the “recovery of the break” this year.

“ In 2026 we will charge less than EUR 170 million ISP than in 2025 and this is the result of the discounts that are happening and that represent 23 cents per litre”, he explained.

It also ensured that next year the discount will remain due to fluctuations in fuel prices. “When the price goes up, we increase the discount. When it goes down, we adjust. The discount is adjusted to the situation of each week, whether it is an increase or decrease in prices ", stressed.

Asked about possible exceptional measures to help close the price increase, Miranda Sarmento said she considered that indiscriminate discounts “are not efficient and do not benefit those who need it most.” In order to combat difficulties, the government prefers to “give more income to families”.

It is recalled that the Government today delivered to the Assembly of the Republic the proposed State Budget for 2027, before the deadline laid down by law. It foresees an economy growth of 2.3% this year and 2.1% in 2027 and balanced accounts this year and a surplus of 0.1% in 2027.

The proposal will be discussed and voted on in general between 27 and 28 October. The overall final vote is scheduled for November 24, after the discussion process in the specialty.