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Financing for decentralization for the municipalities is 1,455.3 million

The Government today presented a document to parliament detailing that the FFD is allocated up to 1,455,329,381 euros, consistent with the current year’s budget of 1,405.3 euros.

The proposal outlines that municipalities will receive up to 1,200.1 million euros to fulfill educational responsibilities, representing the largest allocation.

Allocations include up to 157.2 million euros for health services, 96.5 million euros for social action, and 1.3 million euros for culture.

The proposal also allows for 600,000 euros from the Agency for Integration, Migration, and Asylum (AIMA) budget to be transferred to local administration to cover expenses related to reception and integration centers for migrants.

The Government submitted OE2026 to parliament today, just before the deadline and three days ahead of Sunday’s local elections.

In the macroeconomic scenario, the PSD/CDS-PP Government projects a GDP growth of 2% for this year and 2.3% in 2026.

The executive aims for budget surpluses of 0.3% of GDP this year and 0.1% next year, with a projected reduction in the debt ratio to 90.2% of GDP in 2025 and 87.8% in 2026.

The proposal is scheduled for general discussion and voting between October 27 and 28, with the final global vote set for November 27 after specialized debate procedures.

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