State accounts return to deficit in first half of 2026

Friday, 31 July 2026AI summary

💶 Finance 🏛️ Government #economic-indicator #state-budget

State accounts return to deficit in first half of 2026 — Photo: ECO

Portugal recorded a public deficit of 212.6 million euros in the first half of 2026, marking a shift from the surplus seen in the same period last year. Finance Minister Joaquim Miranda Sarmento noted that the deficit was driven by significant payments to National Health Service (Serviço Nacional de Saúde or SNS) suppliers and recovery support following winter storms. Without these extraordinary health sector payments, the accounts would have shown a surplus of approximately 1.1 billion euros.

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.

If you need emergency care and a local ED is understaffed, call 112 for life‑threatening situations or contact the national health triage line (SNS 24) for urgent guidance; the operator can direct you to the nearest hospital with capacity or arrange an ambulance. As an expat, also consider local private hospitals or clinics if available and keep your health insurance details and ID ready to speed up admission.