Miranda Sarmento emphasized that the Government is on a “path marked by transformation but with a focus on public accounts balance and debt reduction,” during the general debate on the State Budget proposal for 2026 (OE2026).
The minister highlighted the forecasts of budget surpluses for this year and the next, noting that “those talking about the exhaustion of margin omit that the balances without temporary expenses are close to 1% of the Gross Domestic Product (GDP).”
Regarding public debt, he reiterated that the current trajectory cannot be interrupted and stressed the need to “maintain the pace of debt reduction by three to four percentage points per year.”
In this initial intervention, the Finance Minister also argued that the structural transformation of the economy “involves increasing competitiveness levels,” emphasizing that it is necessary “to enhance human capital and reduce the bureaucracy suffocating businesses and citizens.”
The minister noted that with greater human capital and minimal bureaucracy, it will be possible “to have the capacity to boost the economy to grow by 3% at the end of the legislative term,” referring to the goals outlined in the AD’s electoral program.
Miranda Sarmento also announced that the Government is “acting on the fiscal system” and that next year a reform of the tax litigation system and a program to fight tax fraud and evasion will be launched.
In the OE2026 proposal, the Government forecasts the Gross Domestic Product (GDP) to grow by 2% this year and 2.3% in 2026.
The executive aims to achieve surpluses of 0.3% of GDP in 2025 and 0.1% in 2026. 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 today, with the final overall vote scheduled for November 27, following the detailed debate process.
