Portugal achieved a budget surplus (excedente orçamental) of 0.7% of GDP in 2025, totaling over two billion euros. Finance Minister Joaquim Miranda Sarmento described the result as historic but warned of a more demanding economic environment in 2026. The surplus was driven by high employment and social security contributions, though critics point to significant cuts in planned public investment. Residents should note that while the national accounts are balanced, the government expects slower growth ahead.
Portugal records historic 0.7% budget surplus for 2025
Friday, 27 March 2026AI summary
Context & Explainers
- Minister of State and Finance (2024–present)
- Party: Social Democratic Party (PSD), Partido Social Democrata
- Background: Economist, university professor (ISEG)
Joaquim Miranda Sarmento is Portugal's Finance Minister in the AD government led by Luís Montenegro. An economist and professor at ISEG (Lisbon School of Economics & Management), he served as PSD parliamentary group leader before joining the government.
As Finance Minister, he oversees the state budget, tax policy, public debt management, and fiscal relations with the EU. His decisions on tax brackets, IRS withholding tables, housing incentives, and public spending directly affect residents' cost of living and investment climate.
Portugal recorded a budget surplus of 0.7% of Gross Domestic Product (Produto Interno Bruto or PIB) in 2023, a result the government describes as historic. This performance is notably stronger than the Eurozone average deficit of 3.6%, as well as deficits in France (5.5%), the UK (6.0%), and the United States (6.3%). The surplus helps the country reduce its public debt, though officials warn of future economic uncertainty.
5 sources
- Seven answers regarding the 2025 state surplusObservador ·
- Budgetary 'brilliant performance' achieved with record social security contributions and deep cuts to planned investmentDiário de Notícias ·
- The (dis)enchantment with public accountsCorreio da Manhã ·
- The economy's ability to create jobs continues to lead the State to surplusesPúblico ·
- Sarmento's five warnings for the 2026 public accounts following a “historic result” in 2025ECO ·
