Finance: Public spending news in Portugal

The Budget, Finance and Administration Committee has unanimously approved requests to summon the Inspectorate-General of Finance (Inspeção-Geral de Finanças or IGF) and various administrations of the public broadcaster RTP from 2018 to 2024. The inquiry focuses on the allocation of subsidies deemed improper. Separately, RTP recently contracted a consultancy firm for 74,000 euros to assist in selecting its new board.

The President of the Court of Auditors (Tribunal de Contas), Filipa Urbano Calvão, has criticized a government proposal to amend the oversight of public contracts. The court warns that raising the threshold for prior approval to 10 million euros weakens public finances and creates potential for corruption. The Social Democratic Party (Partido Social Democrata or PSD) has since accused the court of attempting to influence members of parliament through a social media campaign against the bill.

Update: Court warns of corruption risks in public contract changes

New reports indicate that the proposed changes would remove approximately eight billion euros from the court's oversight, representing a 60% reduction in the value of contracts subject to prior review compared to last year. The court maintains that these measures create zones without scrutiny, while the government argues the move is a first step toward broader administrative reform.

Bank of Portugal (Banco de Portugal) Governor Álvaro Santos Pereira stated that a retirement agreement with his predecessor, Mário Centeno, will save the institution €2.2 million in future salary and social security costs. The Governor emphasized that the pension will be paid by the bank's own pension fund and will not cost taxpayers anything. Tax-paying residents should note that the agreement settles the former Governor's status as he transitions out of his remaining consultant role.

The Ministry of Finance (Ministério das Finanças) has ordered central administration bodies to build larger spending reservations — up to 7.5% of tax‑funded expenditure — as it prepares the State Budget (Orçamento do Estado) for 2027. Officials say storm damage could force a budget adjustment if costs near €2 billion, though routine budget margins still provide some room. The move signals tighter public spending and possible delays or cuts to planned programmes; taxpayers and anyone expecting new public projects should watch finance ministry guidance.