# Finance Minister Miranda Sarmento Rejects Opposition Budget Proposals The government dismisses fiscal amendments from opposition parties, citing budgetary risks and inconsistency. - **Source:** [Observador](https://observador.pt) - **Published:** 2026-11-06 - **Topic:** [politics](https://brifing.si/c/politics) - **Original article:** - **On Brifing:** https://brifing.si/s/a6ba2197-c7bf-43b5-8e5c-3d91f274c60a ## Budgetary Stance Hardens Finance Minister Joaquim Miranda Sarmento has officially rejected a wide range of opposition amendments to the 2027 State Budget. During parliamentary hearings, the minister dismissed proposals from the Chega, PS, and PAN parties. He argued that these fiscal changes threaten national financial stability and violate essential budgetary consolidation goals. ## Chega Proposals Criticized Miranda Sarmento heavily criticized Chega for submitting over 600 amendments. He claimed these measures would cost over 10 billion euros, potentially leading the country to financial ruin. The minister compared the party's economic strategy to the governance of Liz Truss and José Sócrates, warning of inevitable intervention by international lenders. ## PS Strategy Challenged The Socialist Party (PS) proposed reducing ISP fuel taxes and VAT on essential goods, funded by suspending IRC tax cuts and ending moderate rent programs. Miranda Sarmento labeled these proposals as incoherent. He noted that the PS now seeks to govern from Parliament using instruments they previously avoided while in power. ## Fiscal Neutrality Concerns The minister argued that PS proposals lack true neutrality. He highlighted that a one-percent IRC reduction, worth 300 million euros, cannot offset a 1.2 billion euro ISP cut. Furthermore, he pointed out that IRC tax effects would not manifest in state revenue until 2028, creating an immediate, unmanageable fiscal gap. ## PAN Proposals Denied The PAN party's attempt to reduce VAT on essential goods for low-income families was rejected by the minister. Miranda Sarmento also dismissed proposals to end the non-habitual resident tax regime. Additionally, he rejected PAN's suggestions regarding capital gains reinvestment periods and mortgage interest deductions, citing potential long-term fiscal imbalances. ## Legislative Power Dispute A central point of contention involves the ISP tax mechanism. The PS wants parliamentary oversight for fuel tax changes, moving away from the current system of government-issued ordinances. Miranda Sarmento accused the PS of hypocrisy, noting they frequently used ordinances themselves and are now attempting to govern through a parliamentary coalition. ## Economic Stability Risks The government's primary concern remains adhering to European fiscal rules. Miranda Sarmento warned that the opposition's combined fiscal stimulus would exceed the spending levels seen during the 2009 and 2010 periods. He emphasized that such policies would force Portugal into a state of non-compliance with established European Union financial regulations. ## Future Budget Outlook As the 2027 budget debate continues, the government maintains a firm stance against external fiscal interference. The minister's rejection of these amendments underscores a strategy focused on consolidation rather than expansionary spending. The focus now shifts to whether the government can secure enough support to pass the budget without these concessions. ## Sources covering this story - [Observador — Finance Minister Miranda Sarmento Rejects Opposition Budget Amendments](https://observador.pt/2026/11/06/da-esquerda-a-direita-miranda-sarmento-distribuiu-naos-aos-partidos-da-oposicao/) - [Público — Miranda Sarmento Rejects Opposition Proposals for 2027 State Budget](https://www.publico.pt/2026/11/06/economia/noticia/miranda-sarmento-sinais-abertura-propostas-oposicao-oe-2194117) --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._