The bill delivered to parliament on Thursday moves IRS brackets up 3.88 percent, lifts the tax-free floor to 13,580 euros, raises the young buyers' IMT exemption to 338,141 euros and ends the tuition freeze. Parliament can still amend it before the final vote on 24 November.
The Government expects 2.3 percent growth this year and 2.1 percent in 2027, a 0.1 percent surplus and debt at 84.5 percent of GDP. The fiscal council endorses the forecasts but says 2027 growth is the most optimistic around and this year's inflation figure is unlikely.
The UTAO puts the citizens' bill at about 230 million euros a year, against 445.2 million from the Government and 115.9 million from Social Security, and says the Government assumes parents will switch to sharing in numbers its own data do not show.
The special supplement and complement for veterans arrive automatically with the October pension. The 2026 budget raised both, phased over two years: what each band gets now, what follows in 2027 and how to apply if nothing arrives.
The government meets the three union groups days after a national strike and before Friday's budget. Two of them signed January's multi-year deal and now want it reopened.
The President asked for cross-party deals that outlast elections, listed the cost of living and a slow State as threats to the Republic, and closed with Jorge Palma. The PSD applauded; the PS, Chega, IL and the left did not all agree.
The draft plan and budget for 2027 forecast a 112 million euro deficit and slower growth as tourism weakens, while nearly doubling the money spent promoting the islands. The regional assembly votes in November.
