The PS in the Lisbon City Council announced this Monday, December 15th, that it will vote against the municipal budget proposal for 2026, presented by the PSD/CDS-PP/IL leadership, which governs without an absolute majority, while Chega keeps the voting direction “open”.
For the socialist council, Lisbon’s municipal budget proposal for 2026 “represents a wrong political option for the city”, because it does not respond to the housing crisis, reduces investment in critical areas, postpones solutions in public schools, health and social facilities and lacks a strategic vision for a European capital.
“For these reasons, Socialist Party councilors will vote against this budget”the socialists anticipate, in a statement.
In reaction, the president of the municipal executive, Carlos Moedas (PSD), says that “it is not understandable” that the PS decides to vote against a budget that has not yet been presented or discussed in a council meeting, considering that this position reflects “the radicalism of the Lisbon PS” and, above all, that “Lisbon residents cannot count on the PS”.
The Chega party, which is the second main opposition force, after the PS, has not yet decided which way to vote on the budget proposal for next year, hoping that the PSD/CDS-PP/IL leadership will still give some explanations during the municipal executive meeting to vote on the budget, scheduled for Wednesday.
“For now, we understand that there are positive aspects in the budget that are in line with Chega’s policies and what we proposed in the electoral program for the city, and there are others that continue what led us, in recent years [na Assembleia Municipal]voting against, but it remains to be seen whether or not this will be implemented later”says Chega councilor Bruno Mascarenhas, speaking to Lusa.
Regarding the announced vote against by the PS, Bruno Mascarenhas warns that Chega is not conditioned by the voting sentiment of the other councilors, but rather depending on the inclusion of their positions in the budget proposal of the team of the mayor, Carlos Moedas (PSD): “If we see our positions changed, then we are able to support. Obviously we cannot agree on everything. It is not possible to agree on everything. They are different parties, they have different ideological views, but we have to think, above all, about the city and the people of Lisbon.”
Chega highlights, as positive points of the budget, the idea of continuing to improve decision-making processes in urban planning and reducing licensing times, as well as the construction of daycare centers, works in schools and family support, even if it considers [estes pontos] “far short” of what is necessary.
As negative points, the far-right party criticizes the “ideological drift regarding climate change”, considering the proposal to make the Carris fleet 100% green in 2030 “completely absurd”, for reasons of efficiency and costs.
Signed by the PSD/CDS-PP/IL leadership, the municipal budget proposal for 2026, worth 1,345 million euros (ME), slightly lower than the 1,359 ME predicted for this year, should be voted on by the chamber on Wednesday, December 17th, and by the Municipal Assembly on January 13th.
In the previous term (2021-2025), also under the presidency of Carlos Moedas (PSD), who already governed without an absolute majority, the PS council made the four budgets of the PSD/CDS-PP leadership viable, by abstaining, justifying the vote as an “example of responsibility and democratic maturity”, while the remaining opposition, including Livre, BE and PCP, voted against. Chega and IL – which is now part of the Moedas team – had no representation in the municipal executive, both only had elected representatives in the Municipal Assembly.
Led by socialist Alexandra Leitão, the current PS council justifies the vote against the municipal budget proposal for 2026 with global data that current expenditure increases by 12.8% and municipal investment decreases by 22.7%.
“In a context of strong social pressure – housing crisis, degradation of the school system, aging population and growing demands on local public services – the budget significantly reduces structural investment and favors current expenditure”explains the PS, highlighting that for 2026 a cut of around 40% in investment in housing is expected, approximately 68 ME less compared to this year.
This is the first municipal budget of the current mandate (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.
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.