Luís Montenegro addressed the opening of the general debate on the State Budget proposal for 2026 (OE2026), which takes place today and Tuesday in the Assembly of the Republic.
“The approval of the OE does not make the parties responsible for governance, it rather makes them responsible for the political stability promised to the Portuguese,” he stated.
He added, “There is no point in creating artificial dramas that compromise stability.”
The document is guaranteed approval through the abstention of the PS and favorable votes from the benches supporting the PSD/CDS-PP Government. IL, PCP, and BE have already announced votes against, with PAN abstaining, while Chega, Livre, and JPP have not yet disclosed how they will vote on OE2026.
In an initial speech lasting over 20 minutes, the Prime Minister argued that the Government’s proposal brings “economic and income growth,” without forgetting “social justice” and maintaining “the consolidation of financial balance with lower taxes, more investment, and debt reduction.”
“Portugal is growing and growing more than the European Union, with lower taxes, more social justice, more ambition, and all this with the right accounts,” he defended.
Montenegro emphasized that the document implements “a new budgetary doctrine, focused on results and scrutiny of public money use.”
“A more responsible, simple, and transparent way of handling the instrument of state revenue and expenditure (…) We have removed everything that should not be included in this document. The discussion of various public policies has its own moment, and its decision should not be pinned on the budget debate,” he considered.
Contrary to what parties like IL advocate, Montenegro reiterated that “for the second consecutive year, the budget will not increase any taxes.”
“On the contrary. The Portuguese and companies will continue to feel a growing tax relief, thanks to this Government’s policy,” he affirmed, stating this is done without “renouncing the transformation of Portugal or abandoning the welfare state.”
The Prime Minister highlighted the planned reductions in IRS, which he said would directly benefit “more than 2.6 million families,” in IRC, as well as the increase of the National Minimum Wage to 920 euros or pensions.
“For pensioners, we will increase all pensions, which will mean an additional 144 million euros in the pockets of those who have contributed their whole life to have access to a dignified retirement. And we will raise the solidarity supplement for the elderly by 40 euros to 670 euros, with our priority that no pensioner lives on an income below 870 euros by 2029,” he reinforced.
For young people, he pointed to the maintenance of measures already included in the previous Budget, such as the young IRS, IMT or stamp duty exemptions, and the strengthening of public guarantee on housing loans.
[Updated at 15:51]
