Additional effort "is not affordable": Government puts pension bonuses and IRS cuts on the table for the State BudgetPhoto by forium on Pexels
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Инвестиции

Additional effort "is not affordable": Government puts pension bonuses and IRS cuts on the table for the State Budget

Público10 September 2026 at 07:01

The Portuguese Executive put on the table for the State Budget (OE) measures that include pension bonuses and IRS cuts. These proposals come in a context of difficult negotiation, where the government states that an additional effort "is not affordable". Prime Minister Montenegro will have announced these measures which, according to the Executive, reduce the margin available for budget negotiations.

The government warns that if anyone wants to impose other measures beyond those already proposed, they will have to indicate which tax will not be reduced. This position reflects the difficulty in finding fiscal space to accommodate all requests during the State Budget negotiations.

The Executive's strategy is to defend that the measures already announced represent a balance between supporting pensioners and reducing the tax burden, with no capacity for additional efforts without compromising other budgetary priorities.

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