On Oct. 8, the Government approved the 2027 State Budget proposal in the Council of Ministers and submitted it to Parliament the same day (RTP, dnoticias). Miranda Sarmento forecasts a surplus of 0.1% to 0.2% of GDP and growth of about 2% (DN says 2.1%); the Government expects debt to fall to 84.5% of GDP and inflation to ease from 2.9% to 2.3% (Euronews, DN). The IRS tax brackets are updated by 3.88%, which the Executive says keeps the tax burden neutral for pay rises of up to 4.5%. The solidarity supplement for the elderly rises by €50, to €720, and the minimum wage rises from €920 to €970 in January 2027, with a target of €1,100 by 2029. The general debate is on Oct. 27 and 28 and the final overall vote is on Nov. 24. The PS announced that it will abstain, after Montenegro gave assurances on four conditions: a constitutional revision with a central role for the PS and the PSD, protection of pensions, financing of post-PRR investment and support for the regions affected by the storms. The PCP and BE will vote against; Chega threatens to vote against unless the retirement age is lowered, VAT on fuel is cut and zero VAT is applied to a basket of essential goods.
The Budget sets taxes, public-sector pay, pensions and investment for the year. Without a majority of its own, the Government depends on the PS’s abstention, which gives it stability but also limits its room for maneuver.
Minimum-wage workers, pensioners receiving the solidarity supplement and those who pay IRS will be the most affected. The IRS withheld at source in 2027 depends on the final regulations.
The Government says the Budget is responsible: a surplus, falling debt and a higher minimum wage and lowest pensions.
The opposition on the left says the minimum wage is not enough; Chega says the Budget cuts neither taxes nor fuel prices; the unions demand €1,100 now.
With the PS’s abstention secured, approval is on track. What is worth following is what changes between the general debate and the final vote, and whether the Government gives way to Chega or the PS on matters such as fuel or retirement.
RTP, dnoticias, DN, Euronews (Oct. 8, 2026)
Government submits 2027 State Budget: surplus of 0.1% to 0.2% and minimum wage of €970
The proposal, approved by the Council of Ministers and submitted to Parliament yesterday, updates the IRS tax brackets, raises the solidarity supplement for the elderly and counts on the PS’s announced abstention. The general debate is on Oct. 27 and 28.
The Government yesterday approved the 2027 State Budget proposal in the Council of Ministers, submitted the same day to the Assembly of the Republic (RTP, dnoticias). Finance Minister Miranda Sarmento forecasts a surplus of 0.1% to 0.2% of GDP and growth of about 2%, figures that the press reports with slight differences (DN says 2.1%). The Government expects debt to fall to 84.5% of GDP and inflation to ease from 2.9% this year to 2.3% next year (Euronews, DN).
On IRS, the tax brackets are updated by 3.88%, which the Executive says keeps the tax burden neutral for pay rises of up to 4.5%, and the threshold above which the solidarity surcharge is paid goes up. The solidarity supplement for the elderly rises by €50, to €720, and the minimum wage goes from €920 to €970 on Jan. 1, 2027, with a target of €1,100 by 2029; some unions want more. The cut in IRS rates was handled in a separate law, not in the Budget. The PS, led by José Luís Carneiro, will abstain after assurances on pensions and on financing investment after the PRR, which guarantees approval; the PCP and BE will vote against and Chega threatens to do the same.