Portugal's Forward-Looking Fiscal Path: Budget 2026 Insights

Portugal's centre-right minority government presented its 2026 budget bill on Thursday, projecting a steady economic growth rate of 2.3% and a modest surplus, despite implementing new tax cuts for corporations and lower-income families.

The financial plan anticipates a budget surplus equal to 0.1% of the GDP, showing Portugal's commitment to maintaining fiscal responsibility, which stands out in the euro zone post-debt crisis.

The public debt is expected to decrease to 87.8% of GDP by 2026. Measures to boost disposable income, such as tax cuts for middle-income earners and young buyers' incentives, are included, alongside a gradual corporate tax reduction to 17% by 2028 to ignite business growth.

(With inputs from agencies.)