Portugal plans tax cuts and pension bonuses while targeting a near-zero budget surplus
The finance minister said the government will return money to pensioners and workers through tax relief, aiming for a budget balance close to zero by year-end.
Portugal’s finance minister, Joaquim Miranda Sarmento, told reporters that the government can afford to return money to the population, dividing the assistance between pensioners and those who pay income tax. The cabinet approved the plan, which he said does not threaten the expectation of a balanced public budget by the close of one outlet fiscal year. He highlighted that recent strong fiscal performance, despite the full repayment of recovery-plan loans, created the necessary margin for these measures.
The pensioner benefit will reach roughly two million people, while the tax reduction is set to help several million households, according to the minister. He also referenced new sources of uncertainty, including early-year storms and the ongoing conflict involving Iran, but maintained confidence in the fiscal outlook.
