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Economy · Funchal · 20 September 2026

Budgetary Balance Returns as a Priority in Economic Policy

Budgetary balance and debt reduction are central pillars of the current government's economic policy.

Budgetary Balance Returns as a Priority in Economic Policy

The topic of a zero deficit in public accounts has gained momentum in recent months, driven by the economic policy of Luís Montenegro's government. Budgetary balance and debt reduction have been established as central pillars.

The State Budget for 2026 initially projected a surplus of 0.1% of GDP, around 260 million euros, following surpluses in previous years. However, the economic scenario has become less favorable, leading the Minister of Finance, Joaquim Miranda Sarmento, to admit in April that Portugal might not reach the projected targets for 2026.

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