The bill forecasts economic growth of 2.1% in 2027, a slight slowdown from the 2.3% projected for this year
International News via Reuters:
Portugal’s parliament on Wednesday approved the centre-right minority government’s 2027 budget bill at first reading despite opposition from far-rght party Chega after the opposition Socialist Party abstained to avert a political crisis.
The bill forecasts economic growth of 2.1% in 2027, a slight slowdown from the 2.3% projected for this year.
It targets a budget surplus of 0.1% of gross domestic product next year, after a balanced budget in 2026, despite a cut in the corporate tax rate to 18% from 19%, tax reductions for lower-income households and higher pension spending.
The budget was backed only by 89 lawmakers from the Social Democrats and two members of the centrist People’s Party, which together form the ruling coalition. A total of 79 lawmakers voted against and 60 abstained, including 58 Socialists.
This is the second time Prime Minister Montenegro’s government has depended on Socialist support to pass a budget, with 60 lawmakers from far-right Chega and a smattering of others from parties including the Liberal Initiative, the far-left Livre, the Communists, and the Left Bloc voting against.
The bill must now pass a second and final vote on Nov 24 after committee discussions and amendments.
Reporting by Sergio Goncalves; Editing by Victoria Waldersee
