On Tuesday 27 October, Parliament begins the general debate on the Government’s proposed State Budget for 2027, in a discussion that is also expected to be marked by housing protests, SIC Notícias reports.

The debate has an expected duration of more than ten hours and will end Wednesday with the general vote on the document.

Approval has already been guaranteed by the abstention of the Socialist Party.

The debate kicks off 27 October at 3 pm with a speech by Portugal’s Prime Minister, Luís Montenegro.

Recent protests

Montenegro has had no public agenda since 16 October, with the opposition criticising his silence, especially following the police interventions on Sunday to break up the demonstrations for the right to housing in Lisbon and Porto, which resulted in dozens of injuries and arrests.

The Minister of Internal Administration, Luís Neves, defended the police action, which, at the party level, had the support of PSD and Chega.

On Friday, in Parliament, the Finance Minister, Joaquim Miranda Sarmento, argued that the Government has already taken “many measures” to respond to the housing crisis and that “practically everything has already been done,” warning that the initiatives will take time to have an effect, according to SIC Notícias.

A protest on housing affordability has been scheduled outside the Assembly of the Republic Tuesday at 6:30 PM.

Budget forecasts

The favourable vote from the parliamentary groups supporting the government, PSD and CDS-PP, and the announced abstention from the PS guarantee the approval of the document at this stage.

Chega and IL have not yet formally announced their votes against, but both parties have hinted that this will be the most likely scenario. On the left, PCP and BE have already confirmed their vote against, while Livre, PAN and JPP have not revealed their voting intention.

The 2027 State Budget proposal, the third submitted by the Luís Montenegro government, forecasts economic growth of 2.3% this year and 2.1% in 2027, with balanced accounts this year and a surplus of 0.1% in 2027.

Housing and income

The Portugal News reported that the Public Finance Council (CFP) considers the budget forecasts in the proposed State Budget for 2027 to be “plausible” but calls for more efficient management of state resources.

According to the government website, the State Budget for 2027 focuses on “improving family incomes and living conditions, strengthening public services, and developing the country,” and describes the budget as “an instrument that seeks to meet the needs of families, promote inclusion and territorial cohesion.”

Regarding housing, the government said that in 2027, €1.513 billion is earmarked for public housing promotion and rehabilitation programmes, as well as funding for 45,000 new homes not covered by the Resilience and Recovery Program (PRR). These new homes are not promised to be available in 2027.

The government said they will continue to prioritise “strengthening the supply of public housing, promoting affordable rents, and supporting families with the greatest difficulties in accessing housing.”

On the subject of income, the government's continued goal is to raise the national minimum wage to €1,100 by 2029, along with creating conditions for the average wage to reach €2,000 by the end of the decade. In 2027, the National Minimum Wage (SMN) should reach €970, allowing for a continued reduction in wage disparities.

Taxes on households will continue to decrease, and families will experience tax relief of €2.9 billion in 2027.

The final global vote is scheduled for 24 November.

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