Portugal’s State Budget for 2026 approved overall – opposition PS party abstains

Portugal’s draft budget for 2026 has been approved overall in the Portuguese parliament with the ruling centre-right PSD and CDS-PP parties voting in favour and abstentions from the opposition socialist PS party, PAN (People, Nature & Animals) and JPP (social liberal) parties.

The far right party populist Chega, joined party Livre and the left-wing parties PCP and BE in voting against.

It is the first State Budget from the XXV Constitutional Government and the second from the PSD and CDS-PP coalition Democratic Alliance (AD) headed by Prime Minister Luís Montenegro who has been in power for five months.

The General Secretary of the PS party, José Luís Carneiro, announced two weeks ago on October 15 that his party would abstain. He said his party abstained to ensure political stability.

The vote against from Chega, the second largest parliamentary group, was announced on Tuesday by its President, André Ventura.

Ventura justified the decision on the “suffocating tax” on companies and families to “feed the gigantic State machine, as well as over the fuel tax.

A discussion on the State Budget begins on Wednesday at the Budget, Finance and Public Administration Committee, where all ministers and institutions and bodies such as the Court of Auditors, the Economic and Social Council and the Public Finance Council will be heard.

The hearings end on November 7, the deadline for parties to submit proposals for amendments to the State Budget. The final vote on the State Budget is scheduled for November 27.