Support for those affected by bad weather begins to be paid next week

Government “will do everything” to avoid returning to deficit

The Finance Minister admitted that the damage caused by the bad weather will have a “significant budgetary cost”, but assured that the Government will “do everything” to avoid a return to deficit.

In the same interview with RTP, Miranda Sarmento recalled that the State Budget (OE) for 2026 was constructed to have a “small surplus”, but highlighted that the “tragedy [que se regista] all over the country” will have “a significant budgetary cost, on the expenditure side”.

Miranda Sarmento pointed out as examples the support for the population, the reconstruction of public facilities, such as roads and railways, and the loss of revenue, with less VAT, IRS or exports.

“We are going to have a significant budgetary impact, it is not yet possible to estimate it. The budgetary path to balancing the public accounts was narrow in this year 2026”, added the government official, highlighting that although the 2025 budgetary result was “better than expected, the path became quite narrow again” with the current scenario caused by bad weather.

The Minister of Finance assured, however, that the Government will do everything to avoid a return to deficit and to maintain balanced public accounts.

“There is a great responsibility of the Government and, I hope, of the other political actors, that the country must maintain public debt balance and continue to reduce public debt”, he insisted.

Miranda Sarmento defended that the “good results” that the governments led by Luís Montenegro obtained in 2024 and 2025 give “confidence and credibility”, but recalled that he always anticipated that 2026 would be a “difficult year from a budgetary point of view”, due to having to execute 2.5 billion euros in loans from the PRR (Recovery and Resilience Plan)”.

Thirteen people have died in Portugal since last week following the passage of depressions Kristin and Leonardo, which also caused many hundreds of injuries and displacement.

The total or partial destruction of homes, businesses and equipment, the fall of trees and structures, the closure of roads, schools and transport services, and the cut of energy, water and communications are the main material consequences of the storm.

The Centro, Lisbon and Vale do Tejo and Alentejo regions are the most affected.

The Government extended the calamity situation until the 15th for 68 municipalities, which will benefit from support measures of up to 2.5 billion euros.

The calamity situation in mainland Portugal was initially declared between January 28th and February 1st for around 60 municipalities, and was then extended until the 8th for 68 municipalities, before being extended again until February 15th.