The Public Finance Council (CFP) considers that the proposed State Budget for 2026 (OE2026) is based on “revenues of an extraordinary nature” and “unsubstantiated changes” in expenditure forecasts.
And, despite foreseeing a progressive reduction in debt and a new balance between revenue and expenditure, he believes that the proposal “raises doubts regarding its sustainability, recalling practices that in the past limited the transparency and credibility of budgetary policy”.
In the global assessment of the Analysis of the State Budget Proposal for 2026, released this Thursday, October 23, the institution declares: “The budget proposal for 2026 presents the forecast of a global budget balance, supported, in part, by revenues of an extraordinary nature and on assumptions that reflect, in some cases, unfounded changes to the normal dynamics of expenditure”.
“Although this strategy allows us to project a positive budgetary result and the continued reduction of the public debt ratio, raises doubts about its sustainability, recalling practices that in the past limited the transparency and credibility of budgetary policy”warns the institution responsible for evaluating public accounts.
At a time when budget surpluses are ensured by positive Social Security balances, which have benefited from an increase in contributions at a time of strong dynamism in the labor market, the organization led by Nazaré Costa Cabral reinforces the warning that any economic shock could jeopardize the balance achieved in recent years that has allowed several executives to increase current expenditure and do without tax revenue. “To ensure the sustainability of public finances, it is essential to favor a budgetary balance that is less dependent on cyclical factors and specific measures”he defends.
He also warns that the investment would have to be protected from any expenditure cuts, in order to guarantee the country’s future capacity to generate wealth: “This balance must be achieved without compromising productive public investment, thus also guaranteeing the sustainability of economic growth and intergenerational equity”he adds.
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