The Lisbon City Council plans to invest 38 million euros in works in schools, as well as 6.7 million in daycare centers and 8.5 million in health centers, according to the municipal budget proposal for 2026.
When presenting the proposal, the vice-president of the chamber, Gonçalo Reis (PSD), who is responsible for Finance, said that in 2026 four schools will be under construction and 10 school projects will be underway, with a planned investment of 38 million euros (ME).
In the area of Education, the PSD/CDS-PP/IL leadership also proposes the hiring of 100 operational assistants and the consolidation of social support in schools, as well as a school mentoring program to promote school success and a platform for accessing education indicators in Lisbon.
In expenses by area of activity, the executive forecasts 78.2 ME for Education next year, 26.4 ME more than the 51.8 ME expected to be executed this year.
In the budget for this year 2025, the chamber estimated 58 ME for Education.
As for social support and equipment, the vice-president of the chamber said that an investment of 6.7 ME is estimated in daycare centers over the next year, with the offer of three more daycare centers; 8.5 ME in health centers; 3.7 ME in support for institutions, associations and social initiatives; 1.8 ME at Hotel Social Lisboa and 1.2 ME in reception centers.
In the area of Sports, Gonçalo Reis announced 1.8 ME for works in sports complexes and 3.4 ME in support for entities, associations and sports clubs, as well as the Lisboa Ativa project to promote active lifestyles.
The municipality’s expenses under the heading “Social support and Sports” estimate 39.3 ME for 2026, 4.8 ME more than the 34.5 ME expected to be implemented this year.
For 2025, the chamber envisaged an investment of 38 ME in the area of Social Rights, including 12 million to respond to homeless people and 8 ME for Sports.
Municipal companies in Lisbon with 529 million in 2026, biggest share goes to Carris
The municipality also foresees a total of 529 million euros for the five municipal companies in 2026, with emphasis on 250.3 ME from Carris.
The largest share of the 529 ME foreseen for municipal companies to implement their respective activity plans and budget are intended for companies in the area of mobility: Carris, with 250.3 ME, and the Lisbon Mobility and Parking Company – EMEL, with 68.3 ME.
Lisboa SRU, a municipal urban rehabilitation company, has a planned 96.3 ME and Gebalis, a public company managing municipal neighborhoods, 64.9 ME.
The budget proposal for next year provides for EGEAC, the company that manages municipal cultural spaces, 49.3 ME.
According to him, these are “necessary means for companies to develop their activities and investments in the areas of urban rehabilitation, public space, housing, mobility and culture”.
According to Gonçalo Reis, the new administration of Carris, a company that has several projects planned or underway with an impact on the 2026 budget, will be formalized in the coming weeks.
“It will be formalized in the coming weeks. The current administration is in office until the end of December and, therefore, we will find a transition solution”, he stated. In October, the president of the transport company’s administration resigned, following the accident with the Glória elevator, in September, with 16 deaths.
The mayor also highlighted that it is “perfectly predictable that there will be some adjustments in municipal companies” and that “there will soon be news” also regarding “total and partial” placements in the administrations of other companies managed by the municipality.
Of the budget for Carris, 35 ME will be for fleet renewal, namely for 98 new green energy buses.
Among the plans planned for the Lisbon transport company (buses, trams and elevators) are the start of the design phase for the reformulation of the Carris space in Santo Amaro, “which is a historic space” and will have, among others, technical features and a museum area.
Carris plans to review the network in the city by 2030, a plan “that is already underway, already has external consultants and will have a lot of impact”. The start of intercity projects in dedicated corridors (tram 16, from Lisbon to Loures, and the metrobus from Lisbon to Oeiras) also has an impact on next year’s budget.
EMEl foresees an investment of 5 ME in new cycle paths and the expansion of the Gira shared bicycle system and 2 ME for an “’upgrade’ of inspection and the traffic light system”.
Within the scope of CML’s direct expenditure by area of activity, for mobility the proposed budget reserves for 2026 a total of 76.7 ME, slightly above the 76.5 ME estimated for 2025 (a variation of just 0.3%).
With culture, the CML indicates an expenditure of 41 ME (+19.2% than what was estimated for 2025), in the area of Infrastructure, Housing and Heritage 296.7 ME (+6.9%) and in Urban Planning 26.3 ME (+136.9%).
28.1 million euros in Security and Civil Protection for 2026
The budget proposal also estimates an investment of 28.1 million euros in Security and Civil Protection, including 8 million in works at fire stations.
1.4 million euros (ME) are expected for video protection, with an additional 63 video surveillance cameras, as well as 8 ME in works in the barracks, 1 ME for firefighters’ uniforms and hiring 80 firefighters.
Vice-president Gonçalo Reis said that in the Security area, two more sirens are intended to be installed in the Tsunami Warning System, as well as the acquisition of six more civil protection vehicles.
In expenses by area of activity, the executive estimates for the Security and Civil Protection heading a total investment of 28.1 ME next year, 10.2 ME more than the 17.9 ME planned to be implemented this year.
The municipal budget proposal for 2026 also includes investment in the Lisbon General Drainage Plan, a work that Gonçalo Reis chose not to detail, considering that “it is a very technical topic”, referring to the councilor responsible for monitoring this project, Vasco Moreira Rato (independent appointed by the PSD), who is responsible for Urban Planning.
“We are going into the final stretch [da obra]this is guaranteed”, said the vice-president of the chamber, without answering questions about the delay in the General Drainage Plan project, nor about the investment planned to be carried out next year.
Lisbon’s General Drainage Plan is considered “the invisible work” to protect the city from climate change, including resilience to floods and the reuse of water, which includes the construction of two tunnels, one between Monsanto and Santa Apolónia, which has already been completed, and the other between Chelas and Beato, which is underway.
In the area of Urban Planning, which includes the process of reviewing the Municipal Master Plan, the council foresees a budget for next year of 26.3 ME, higher than the 11.1 ME expected to be implemented this year.
The municipal budget proposal for 2026 also focuses on modernization, with a new citizen services portal, intelligent inspection of public space, a new document management system and a new urban management platform, as well as the investment of 1.1 ME in cybersecurity.
Budget of 1,345 million euros scheduled for 2026
The PSD/CDS-PP/IL leadership presented a municipal budget of 1,345 million euros for 2026, slightly lower than the 1,359 million predicted for this year, considering it, according to the vice-president of the municipality, “balanced, safe and considered”.
“We think it’s a good budget”, said Gonçalo Reis (PSD), when presenting the proposal, at the Town Hall.
The person responsible for Finance said that both the expenditure and revenue expected for next year each have a value of 1,345 million euros (ME).
“It is a balanced, safe, well-considered budget and it is not just about the balance between revenues and expenses, it is that we calmly comply with all the ratios, all the rules of good governance, all the principles of prudent, sustainable management, with great tranquility”, declared the vice-president.
Gonçalo Reis said that this proposal, presented three weeks after the current municipal executive took office, aims to ensure the smooth functioning of the Lisbon City Council, with the aim of being able to come into force “as early as January 2026”.
“There are great advantages in predictability”, he maintained, highlighting the option of the PSD/CDS-PP/IL leadership to present the document as “quickly” as possible, so that the municipality can function “smoothly”.
The person responsible for Finance also highlighted the priority in investment, which is expected to grow by 30%, from 313.7 ME in 2025 to 410.2 ME in 2026, while current expenses are expected to increase by 7.5%, from 800.3 ME to 860.4 ME.
The proposal is “very prudent” in terms of financing, with a 55% reduction in bank financing, from 101 ME in 2025 to 45.5 ME in 2026.
“We are even conservative, we are restrained and we will demonstrate this: there are no new loans, there is stabilization of the debt value and well below the available margin”, he explained.
Gonçalo Reis also said that there is a focus on key issues for Lisbon residents, placing funds and focus on high-impact initiatives, in a set of 15 measures foreseen in the Major Options of the 2026-2030 Plan, including a new urban hygiene management model, security plan, 13 new municipal equipment, the creation of new housing neighborhoods and green parks, the Lisbon-Oeiras metrobus and the new 16 Lisbon-Loures tram.
Other measures include reducing municipal taxes and combating excessive bureaucracy, creating 30,000 jobs with the Unicorn Factory, ending zero licensing and reinforcing the supervision of illegal trade, the Cultura na Rua program with more art and shows in public space, Baixa Pombalina UNESCO World Heritage Site and Lisbon European Capital of Contemporary Art.
Regarding the slight decrease between the 2025 budget and the forecast for 2026, Gonçalo Reis justified it with the fact that the Recovery and Resilience Plan (PRR) is coming to an end, noting that the estimated budget for next year represents an increase of 18% compared to the total amount expected to be executed this year, of around 81% of the 1,359 ME.
As for revenue, which is estimated at a total of 1,345 ME for 2026, of which 576.7 ME in direct taxes, the vice-president praised the maintenance of tax rates, with the total return of the Personal Income Tax (IRS) to Lisbon residents, 0.3% of Municipal Property Tax (IMI) for urban buildings and 1.5% of Surcharge.
In direct taxes, the chamber predicts growth in 2026 compared to the amounts collected this year, with revenue from Municipal Property Transfer Tax (IMT) rising from 282 ME to 291 ME, from IMI from 132 ME to 139 ME and from Derrama from 120 ME to 128 ME, while the Single Circulation Tax (IUC) will remain at 18 ME.
This is the first municipal budget of the current term (2025-2029), proposed by the new PSD/CDS-PP/IL administration, under the presidency of the re-elected Carlos Moedas (PSD), who continues to govern Lisbon without an absolute majority.
In the previous term (2021-2025), the four budgets of the PSD/CDS-PP leadership (IL was not part of the municipal executive) were approved due to the abstention of the PS, with the remaining opposition – PCP, BE, Livre and Cidadãos Por Lisboa (elected by the PS/Livre coalition) – voting against.
In the municipal budget for this year 2025, the council estimated an expenditure of 1,359 ME, slightly higher than the 1,303 ME predicted for 2024.
Currently, the executive, which is made up of 17 members, includes eight elected members of the PSD/CDS-PP/IL coalition, who are the only ones with assigned responsibilities and who govern without an absolute majority. In opposition are four councilors from PS, two from Chega, one from Livre, one from BE and one from PCP.