As the government prepares to deliver the 2026 State Budget proposal to the Assembly of the Republic within a week, the topic has become a focus among political leaders. What are their positions, and will the State Budget pass in Parliament?
Prime Minister Luís Montenegro announced on Saturday, during interactions with journalists at an event in Chaves, that the proposal approved on Friday by the Council of Ministers is finalized. However, it will undergo “some adjustments” before its submission on October 10.
“Dialogue with the parties will only start after presenting it in the Assembly of the Republic”, he replied when asked if he plans to meet with PS and Chega leaders before submitting the document.
The executive leader expressed “optimism” regarding the approval of the 2026 State Budget, stating that he “sees no reason for the main opposition parties to oppose the Budget”.
The Prime Minister stated today that he sees no reasons for “the main opposition parties” to vote against the State Budget proposal for 2026 and deferred negotiations until after the document’s submission.
On the same day, during a rally, Luís Montenegro confirmed that the next State Budget will include another reduction in the IRS.
“We are reducing the IRS, we have already done it three times. And we will do it again in the next State Budget”, he assured.
Liberal Initiative believes the State Budget includes party contributions
Mariana Leitão, the president of IL, stated on Saturday that she believes the 2026 State Budget proposal will include contributions from the party, noting that there have been discussions with the government.
“We often talk with the government, and I am very confident that some of these [proposals] will be in the State Budget”, Mariana Leitão told journalists in Faro.
The leader of Liberal Initiative stated today in Faro that she believes the State Budget proposal will include party contributions that have already been discussed with the government.
State Budget approval? “It’s easier,” says PS leader
Meanwhile, the Secretary-General of PS, José Luís Carneiro, believes it will be “easier” to approve the State Budget, given that the government excluded issues considered ‘red lines’.
“It’s easier [to approve] considering that the government and the prime minister have set aside matters vital to us, namely labor rights, the National Health Service, social protection, and, if we want, fiscal policy“, he emphasized.
PS leader considered today that “it’s easier” to approve the State Budget because the government excluded issues that would be red lines, but urged the executive to address the “permanent income loss” of pensioners.
José Luís Carneiro also noted that “nobody wants a political crisis” and wishes to contribute to political stability, but issued a warning.
“Nobody wants a political crisis, yet another political crisis in the country, and we want to contribute to this political stability, but we will not fail to assess very clearly, very concretely the budget proposal to be presented in the Assembly of the Republic”, he said.
The PS leader assured that the party will “stand by those who presented proposals for the valorization of minimum pensions in the Assembly of the Republic”.
PS leader, José Luís Carneiro, stated today that “nobody wants a political crisis” and aims to contribute to political stability, but warned that they will approve “proposals for the valorization of minimum pensions” in the 2026 State Budget.
It should be noted that the State Budget proposal for 2026 will be submitted on October 10 – next Friday – in the Assembly of the Republic. Meanwhile, the general debate will take place on October 27 and 28, and the final vote of OE2026 is scheduled for November 27.
Additionally, before the general plenary debate, the government’s proposal will be presented by the Minister of State and Finance, Joaquim Miranda Sarmento, before the Budget and Finance Committee on October 24, at 10:00 am.
The budget’s specialized process in plenary will begin on November 20.
