Finance Minister warns opposition tax cuts could push Portugal into deficit

Joaquim Miranda Sarmento, Portugal's finance minister, told Lusa that the tax-cut proposals put forward by Chega and the Socialist Party would force the country into a fiscal deficit in 2027 if adopted together. The opposition parties are pushing for a reduction of VAT on fuel and, in Chega's case, a zero-VAT rate on essential food items. Miranda Sarmento said such combined measures would undermine the government's aim of maintaining a positive balance, which this year is expected to be near zero and next year a modest surplus.

He emphasized that any such proposal would need support from both parties to pass. The minister also noted the government's intention to discuss the budget with all opposition forces to ensure fiscal stability.