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2024-10-10 at 18h13

State Budget with lower taxes, higher wages, and fiscal balance

Minister of State and Finance, Joaquim Miranda Sarmento at the presentation of the State Budget for 2025, Lisbon, 10 October 2024 (Photo: Diana Quintela/Portal do Governo)

The Government presented today in Parliament the draft State Budget for 2025, forecasting a 1.8% growth in the Portuguese economy in 2024, and 2.1% in 2025, a budget surplus, and public debt reduction. This budget stands out for the lowering taxes, rising wages, and measures to improve quality in public services and companies’ productivity.

According to the Minister of State and Finance Joaquim Miranda Sarmento, "this is a good budget for the country, households, and people", stressing the importance of the measures to boost income and solve citizens’ problems.

Main measures in the State Budget for 2025:

• Economic growth: Estimated 1.8% in 2024 and 2.1% in 2025.

• Budget surplus: 0.4% in 2024 and 0.3% in 2025, ensuring public debt relation in relation to GDP.

• Lower taxes: Tax brackets updated by 4.6%.

• Meal allowance exemption: Increase to 10.20 euros when paid using a meal card.

• Youth Income Tax: Full exemption in the first year of work and lower taxes in the following nine years, covering around 350 to 400 thousand youths.

• Housing incentives: Property Tax and Stamp Duty exemption for youths when purchasing a home.

• Rising wages for Public Administration: wage increases.

• Investment in health: 16.8 billion euros, a 9% rise on 2024.

The draft State Budget for 2025 shows the Government’s commitment to stimulate the income, boost income for households and youths, and increase public service efficiency. The cut in taxes and the increase in health, education, and housing expenditure are fundamental pillars in this budget, one that seeks to balance fiscal justice and public accounts’ sustainability