Portugal’s Prime Minister engaged in a heated exchange with the Liberal Initiative’s new parliamentary leader during the initial session of the two-day debate on the Government’s State Budget proposal for 2025. The discussion was marked by a clash over fiscal policy.
Mario Amorim Lopes, from the Liberal Initiative, stated that his party holds radical ambitions for the country, claiming the budget proposal represents increased fiscal revenue and public spending, equating the tax burden to levels seen during the troika period in 2014.
The Prime Minister countered this, arguing that the fiscal and contributory burden is on a downward trajectory in Portugal, noting a decrease from 35.2% of GDP in 2023 to a projected 34.7% in 2026, the lowest in recent years.
He further emphasized the government’s desire to reduce the fiscal burden, stating a significant reduction in taxes from 24.9% of GDP in 2023 to 24.1% in 2026 and suggested that the Liberals might be overlooking these achievements or perhaps exaggerating the fiscal situation.
During the debate, PSD representatives emphasized advancements in housing measures, tax relief for the youth, and solutions to the teacher shortage crisis, while socialist deputies criticized the government for unmet goals in housing and state reform.
PCP’s Alfredo Maia condemned the government’s moderate rent concept, demanding general wage and pension increases. Meanwhile, Paulo Muacho from Livre criticized the government’s healthcare performance and highlighted increased public-private partnership spending.
Chega’s Pedro Frazão questioned the Prime Minister’s priorities, suggesting negligence towards farmers and fishermen, citing last year’s budget underspending by €739 million.
