PS Rejects Deficit Claims as Budget Amendments Approach 3,000

Monday, 9 November 2026AI summary

🏛️ Government 💶 Finance #state-budget #rent-caps #chega #expat-finances

PS Rejects Deficit Claims as Budget Amendments Approach 3,000 — Photo: publico.pt

The Socialist Party (Partido Socialista or PS) rejected claims by Finance Minister Joaquim Miranda Sarmento that opposition budget amendments would turn Portugal's projected 0.1% surplus into a 0.2% deficit. Socialist parliamentary leader António Mendonça Mendes accused the minister of unnecessary drama, arguing that the party's proposals are self-financing.

Parliament is currently negotiating 2,867 submitted budget amendments, with the right-wing party Chega filing the largest share at 713 proposals. Debates across the political spectrum remain focused on pension increases, rent controls, and zero-rate value-added tax (IVA zero) on basic foodstuffs.

Context & Explainers

Chega ("Enough") is a Portuguese far-right populist party founded in 2019 by André Ventura. It positions itself as an anti-establishment movement against what it calls a "rotten and corrupt system" of PS-PSD dominance. The party surged from 1.3% in 2019 to 22.8% in May 2025, becoming parliament's second-largest force with 60 seats. Chega's core platform emphasizes strict immigration control—ending automatic CPLP residency, deporting non-independent immigrants, implementing job-market quotas, and requiring five-year social security contributions before benefit access. It advocates radical constitutional reform, including reducing parliament to 100 members, abolishing the prime minister position for a presidential system, and dismantling public healthcare. Law-and-order policies include life imprisonment and chemical castration proposals.

The party is defined by inflammatory anti-Romani rhetoric, with Ventura convicted multiple times for discrimination. Chega maintains international alignments with European far-right figures including Marine Le Pen, Santiago Abascal, and Matteo Salvini. Mainstream Portuguese parties, including Prime Minister Luís Montenegro's government, have imposed a cordon sanitaire, refusing coalition with Chega despite its parliamentary strength.

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.

Socialist Party (PS)

Leader: José Luís Carneiro (since June 2025)
Ideology: Center-left, Social democracy, pro-Europeanism

Portugal's other traditional major party suffered a historic collapse in the 2025 election, dropping from 78 to 58 seats and falling to third place for the first time in democratic history. The party was led by Pedro Nuno Santos from January 2024 until his resignation following the May 2025 defeat. José Luís Carneiro, a 53-year-old former Minister of Internal Administration known for his moderate positioning within the party, was elected unopposed as the new Secretary-General with 95% of votes in June 2025. The Socialist Party governed Portugal from 2015 to 2024, including an absolute majority from 2022 to 2024 under António Costa, who resigned in November 2023 amid a corruption investigation. The PS previously led the innovative "Geringonça" (contraption) coalition government from 2015-2019, a minority government supported by the Left Bloc and Portuguese Communist Party that reversed austerity measures and presided over economic recovery.