Montenegro defends balanced budgets while unveiling tax cut and pension bonus
Prime Minister Luís Montenegro said Portugal’s public finances are balanced despite bold fiscal moves, and announced an extension of agricultural diesel aid.
At a council of ministers in Bragança, Prime Minister Luís Montenegro defended the notion that Portugal’s public accounts remain balanced even as the government pursues ambitious fiscal policies. He pointed to recent steps, including a cut to the personal income tax and a bonus for pensioners, as examples of bold yet responsible budgeting. Montenegro explained that balanced finances reduce the cost of borrowing, which in turn frees up funds for investment in public administration, services, and the broader economy.
He also announced that the temporary 10-cent-per-litre subsidy for agricultural diesel, previously set to end in June, will be extended until the end of the year. Decisions on additional fuel assistance for sectors such as transport, fire services and social institutions are slated for the next cabinet meeting. The prime minister stressed that fiscal health signals reliability to lenders and supports sustainable growth.
