Jornal Do Brasilia - Portuguese Finance Minister to Review Socialist Budget Amendments

Portuguese Finance Minister Joaquim Miranda Sarmento confirmed on Friday that the government will conduct a thorough analysis of approximately 180 legislative amendments proposed by the Socialist Party (PS) for the 2027 state budget (OE2027). The review, conducted during a final parliamentary hearing, focuses on determining whether these measures align with the administration's commitment to maintaining fiscal balance.

Speaking at the Commission for Budget, Finance and Public Administration (COFAP), Sarmento stated that the executive branch would not bypass the evaluation of these proposals. "We will not fail to analyze these proposals, to understand the budgetary impact they have," he said. However, he stressed his expectation that the PS would remain consistent with previous assurances given by party Secretary-General and deputy António Mendonça Mendes during earlier hearings, specifically regarding the preservation of public finance equilibrium.

The Socialist Party’s amendments include a temporary reduction in the Tax on Petroleum Products (ISP) and value-added tax exemptions on food baskets. To offset the resulting revenue loss, the party has proposed suspending the planned reduction in the Corporate Income Tax (IRC) and revoking moderate rent caps set at 2,300 euros.

Sarmento noted that over 2,700 amendment proposals have been submitted by various political parties regarding the broader legislative package. He remarked that "quantity does not mean quality," reiterating his hope that the volume of changes would not compromise the state budget's integrity. The hearing, which lasted from 15:15 to 20:45, also addressed procedural timelines for submitting these changes.

Tensions arose near the end of the session when the Chega party requested an extension of the submission deadline until 21:30. COFAP President Rui Afonso, a member of Chega, authorized the extension, citing his authority to decide on such matters based on commission services' guidance. This decision was contested by PSD deputy Hugo Carneiro, who argued for unanimous party consent, and PS deputy Mendonça Mendes, who requested a written document clarifying the legal basis for the president's power to grant extensions.

During the proceedings, Sarmento criticized the Socialist Party for attempting to "govern through the Assembly of the Republic" in alliance with Chega. He asserted that Portugal has normalized balanced public accounts and that citizens value this stability alongside debt reduction.

The legislative process for OE2027 continues to feature divergent proposals across the political spectrum. The Communist Party (PCP) has proposed restoring pensions for CGA retirees notified to return amounts, while the PSD/CDS coalition has extended young public guarantees to self-construction and hinted at a new pension "bonus." The Left Bloc (BE) submitted 30 proposals focused on housing and the reinstatement of fuel vouchers. Meanwhile, the government projects that the lowest pensions will rise by 3.3% in 2027, with the Social Security Ministry aiming for a financial cushion of 58.5 billion euros.

X. Barbosa--JDB