The Finance Minister, Joaquim Miranda Sarmento, stated on Friday that current data indicates Portugal is expected to have budget surpluses “in the coming years.” This announcement follows a reversal by the Economy Minister, Pedro Reis, on Thursday.
“I can assure you that with these economic conditions, with the information we have today, we project budget surpluses for the coming years,” the Finance Minister said in remarks broadcast by RTP3 in Poland, at the sidelines of the Eurozone finance ministers’ meeting, noting that “less in 2026 due to the impact of PRR [Recovery and Resilience Plan] loans.”
Meanwhile, a source from the Ministry of Finance clarified that the government still forecasts a surplus for 2026, albeit lower in value.
Nazaré da Costa Cabral, President of the Public Finance Council (CFP), warned on Thursday that the “mini cycle of budget surpluses may be over,” stating that there is no room for further measures without finding compensatory policies.
The Economy Minister emphasized on the same day that it is “very clear” Portugal will not have a deficit next year after announcing support measures for the economy to mitigate the impact of tariffs imposed by the U.S. Earlier, he had stated that “no one” could guarantee this.
He returned to this topic without it being raised by journalists, although they had previously questioned him about the CFP’s projections.
News Article with Lusa | 17:42 – 10/04/2025
“International Uncertainty Harms”
The Finance Minister further disclosed that Portugal is attentive to the economic impact and believes that uncertainty harms forecasts:
“We have robust growth forecasts, naturally international uncertainty harms growth forecasts, economic agents’ decisions,” the Finance Minister noted. “We are very committed to maintaining the balance of public accounts,” he further stated.
“We are attentive to the impacts on the Portuguese economy, we will see what tariff levels we will have, what type of products will be more or less affected,” said the Finance Minister, referring to the support program for companies presented on Thursday. “It will be operational within a few weeks,” he added, with the expectation that “these supports will quickly reach the companies.”
“It was necessary to know what the U.S. administration would do,” said Miranda Sarmento, responding to those who accused the government of delaying its response.
[Article updated at 10:49]
