State Budget for 2025 approved in general with PS abstaining – State Budget

The State Budget (OE) proposal for 2025, the first of the social-democratic government of Luís Montenegro, was generally approved with the abstention of the PSthis Thursday, October 31st.

At the end of two days of debate, the Assembly of the Republic approved the OE proposal with the favorable votes of the PSD and the CDS-PP (which support the Government of the Democratic Alliance), the abstention of the PS and the vote against from Chega , from the Liberal Initiative, from the Bloco de Esquerda, Livre, PCP and PAN.

Thus, the OE proposal now moves to the next phase, with the PS committing to make the document viable as a whole, as long as there are no profound changes in the period of the specialtybeing particularly concerned about the fall in IRC (which he opposes).

But the specialty will also be a more tense period for the Governmentwith socialists opening the door to vote against legislative authorization for changes in the Public Service, considering that it is iunconstitutional and criticizing the lack of response from the Government. And with the majority of parties pushing for the reinforcement of the pension increases planned in January – especially PS and Chega.

It is, moreover, in this sense, that the Government has appealed to parties not to come together to do cnegative bonds that “distort” the document.

Budget margin is limited

Despite the votes against at this stage, some parties have already said they will present proposed amendments. Chega said that it intends to present proposals for a steeper reduction in IRC (from 21% to 19% instead of 20%) and to reinforce the regular increase in lower pensions.

However, the Finance minister has insisted that the scope for new measures is limited – maintaining the 0.3% surplus predicted for next year as a guideline and signaling that new measures will have to have a neutral impact, that is, be compensated.