The State Budget proposal for 2026, submitted by the Government and available on the Assembly of the Republic’s website, outlines the transfer of revenue from the Environmental Fund up to 44.75 million euros to the ICNF. This allocation is intended for projects related to the management of protected areas, forest fire prevention, and other nature conservation projects.
The funds are also designated for projects focusing on land-use planning and climate change adaptation, payments to forest sappers’ teams, technical forestry offices, and communal land associations.
The allocation for 2026 is lower than the current budget (53.2 million euros), which marked a doubling of the allocated amount compared to the 2024 State Budget.
The document also plans for the transfer of the ICNF, as the national forestry authority, to local municipalities under contracts concluded or to be concluded within the scope of the Environmental Fund, but without specifying an allocation amount.
The proposal also accommodates ICNF transfers “to entities, services, and national defense area bodies, in support of costs related to surveillance and fuel management actions in state-managed forest areas, under a protocol to be established within the Environmental Fund.”
These two measures were also included in the 2025 State Budget, similarly without funding for their implementation.
The Government submitted the 2026 State Budget proposal to parliament today, one day before the deadline and three days prior to the local elections on Sunday.
In the macroeconomic scenario, the PSD/CDS-PP Government forecasts a GDP growth of 2% this year and 2.3% in 2026.
The executive aims to achieve budget surpluses of 0.3% of GDP this year and 0.1% next year. Regarding the debt ratio, it is estimated to decrease to 90.2% of GDP in 2025 and 87.8% in 2026.
The proposal will be discussed and voted on in general terms between October 27 and 28. The final global vote is scheduled for November 27, following the detailed debate process.
