The government has announced an allocation of 406,752,496 euros to municipalities through the Parish Funding Fund (FFF).
Parishes undergoing disaggregation will receive an amount proportional to the gross value transferred to the parish union in the previous year.
This year, the State Budget Law has allocated a total of 396,604,751 euros in general subsidies to these local administrations.
The proposal put forward by the PSD/CDS-PP government stipulates that the FFF distribution ensures a minimum nominal growth of 2% compared to the amount recorded in the previous year’s budget for each parish.
Following this rule, 70% of the remaining FFF will be distributed equally among all mainland parishes recognized by law as low density, and among the parishes of the autonomous regions.
The remaining 30% will be divided “equally among the other parishes.”
Under the proposal, parishes in Lisbon will receive a total of 87 million euros in 2026, as part of the administrative reform of this municipality, carried out separately from the reform of the rest of the country, “including an extraordinary update due to increased spending on the wage bill related to transferred powers.”
Additionally, Lisbon’s parishes will receive a further 11,772,141 euros due to a “legally imposed increase” in salary expenses.
The parish councils will also have 41 million euros available for paying the salaries of local officials working part-time or full-time.
The government submitted the OE2026 to parliament today, one day before the deadline and three days ahead of the local elections on Sunday.
In the macroeconomic scenario, the PSD/CDS-PP government forecasts a 2% growth in the Gross Domestic Product (GDP) this year and 2.3% in 2026.
The executive aims to achieve surpluses of 0.3% of GDP this year and 0.1% next year. As for the debt-to-GDP ratio, it is estimated to decrease to 90.2% in 2025 and 87.8% in 2026.
The proposal will be discussed and voted on in general between October 27 and 28. The final global vote is scheduled for November 27, following the specialized debate process.
