The Lisbon City Council (CML), led by the PSD/CDS-PP/IL coalition, presented this Tuesday the proposed municipal budget for 2026, worth 1,345 million euros (ME), slightly lower than the 1,359 million predicted for this year, considering it, according to the vice-president of the municipality, Gonçalo Reis, “balanced, safe and considered”.
“We think this is a good budget, that it is a balanced budget. (…) It is balanced, it reinforces investment. I think everyone is in favor of balance, everyone is in favor of reinforcing investment. It is financially prudent. Everyone is in favor of that”, declared Gonçalo Reis, in response to journalists, at the presentation of the budget proposal for 2026, at Paços do Concelho.
The person responsible for Finance also highlighted the priority in investment, andm 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. According to Gonçalo Reis, both the expenditure and revenue forecast for 2026 have the same value, 1,345 million euros, ensuring that the document complies with all ratios and rules of good governance, without new loans and with debt stabilization well below the available margin.
From the perspective of the vice-president of the chamber, the approval of the municipal budget is “predictable”, without revealing who in the opposition will allow it to be made viableeven if he just abstains – as the PS did in the last four budgets -, since the team of the re-elected president of the municipality, Carlos Moedas (PSD), continues in this second term to govern without an absolute majority: the executive is made up of 17 members, of which eight belong to the PSD/CDS-PP/IL coalition, the only ones with assigned responsibilities, and nine from the opposition (four from PS, two from Chega, one from Livre, one from BE and one from PCP).
PS criticizes, but there is no point in voting
The PS in the Lisbon Chamber considers that the proposal fails the city’s essential priorities, leaving open, for now, what the voting will be for the proposal, which should be voted on by the council on December 17th and by the Municipal Assembly on January 13th.
For the PS council, led by socialist Alexandra Leitão, “despite the announcement proclaiming ‘more spending’, this budget does not respond to the city’s urgent needs in the housing sector”, considering that it “reduces the capacity for public investment in municipal homes at a time when thousands of families are waiting for dignified solutions”.
Accusing the management of the re-elected mayor, Carlos Moedas (PSD), of “hiding reality and cutting municipal housing”, the socialists criticized the announcement of a 30% growth in expenditure planned for 2026, since this value results from a comparison between this year’s budget execution and the budget for next year, which they considered to be “an incorrect methodology, as the rigorous comparison should be made between initial budgets, not between execution and proposal”.
Chega says it is “premature” to define its position, but promises “constructive opposition”. The Left Bloc accuses the executive of a “lack of ambition”, dependence on real estate speculation and maintaining the total refund of the IRS, which it considers to worsen inequalities. PCP and Livre have not yet commented, but have historically voted against.
The vice-president highlighted that the proposal was presented three weeks after the executive took office to ensure entry into force in January and ensure predictability in municipal functioning. The estimated revenue for 2026 of 1345 million includes 576.7 million in direct taxes. The current rates remain: full IRS refund to Lisbon residents, IMI of 0.3% and Surcharge of 1.5%. Growth in the main revenues is expected: IMT from 282 million to 291 million, IMI from 132 million to 139 million, Spill from 120 million to 128 million, while the IUC remains at 18 million.
Housing without budget target
The proposal does not reveal what investment is planned in the housing area, but Gonçalo Reis states that “a huge investment” is expected.
“In relation to housing, we act on a series of initiatives and I will tell you: the total support is so significant that it is difficult for us to put just one number”, said Gonçalo Reis (PSD), in response to questions from journalists, at the presentation of Lisbon’s municipal budget proposal for 2026, which took place in the Town Hall.
Without advancing the amount of investment in 2026 for housing, an area in which 154 million euros were allocated from the municipal budget for this yearthe vice-president of the chamber assured that next year there will be “a huge investment in housing”, with more than 520 dwellings in new construction and rehabilitation to be completed and another around 500 dwellings in projects to be completed.
“There are 4,800 homes that will benefit from energy efficiency”, indicated the mayor, noting that this will result from the work of the municipal company Gebalis, responsible for managing the municipal districts.
Gonçalo Reis also highlighted the De Volta ao Bairro program, which plans to make 700 homes available in historic neighborhoods throughout the mandate, primarily for young people, estimating the delivery of 102 homes in 2026.
In the area of housing, the PSD/CDS-PP/IL leadership also includes the development of operations in Vale de Chelas and Quinta do Ferro, where new housing units will be built, as well as the continuity of the rental support policy, expected to help 1,100 families.
Education and sport
The PSD/CDS-PP/IL leadership 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.
When presenting the proposal, Gonçalo Reis 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.
In the area of Education, it is also proposed to hire 100 operational assistants and consolidate 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.
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.
Urban hygiene with renewed fleet
An investment of 12 million euros is expected to renew the urban hygiene fleet in 2026. Gonçalo Reis plans to invest 12 million euros in the purchase of another 54 vehicles, another 20 solid waste trucks and seven sweepers.
In this way, he indicated, the municipality will have 96% of its urban hygiene fleet electric and It also plans to hire 300 corner workers and 30 drivers.
The budget proposal for next year also includes 10 ME for the modernization of the public lighting network and 14.6 ME for intervention and requalification of public spaces in the city.
In terms of green spaces, the Tapada das Necessidades requalification project stands out, with a planned investment of 3.1 ME.
More video surveillance and the “final stretch” of the drainage plan
The proposal 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 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 the hiring of 80 firefighters, announced the vice-president of the chamber. The person responsible for Finance said that in the Security area, two more sirens are planned 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.
“Let’s enter 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.
Culture and unicorns
Gonçalo Reis stated that Culture “is a big focus of this executive”, under the supervision of the mayor’s president, Carlos Moedas (PSD), who shares the portfolio with councilor Diogo Moura (CDS-PP). THE The Chamber estimates investing 8 million euros in cultural heritage and 8.2 million in support for cultural institutions next year, as well as 1.2 million in new infrastructure for the Unicorn Factory.
Noting that the municipal company EGEAC – Lisboa Cultura is responsible for the management and programming of 27 cultural facilities in the capital and the Municipal Directorate of Culture manages 49 facilities, the vice-president also said that the consolidation of the Teatro em Cada Bairro program and the investment in the Cultura na Rua program, with shows and content in public spaces, stating that the executive intends to “continue to affirm Lisbon as an international center for contemporary art, with enormous potential”.
In expenses by area of activity, the executive estimates 41 ME for Culture over the next year, which will represent an increase of 6.6 ME compared to the 34.4 ME expected to be executed this year.
Furthermore, the PSD/CDS-PP/IL leadership foresees, for 2026, a budget of 49.3 ME for the municipal company EGEAC – Lisboa Cultura.
The PSD/CDS-PP/IL leadership also wants to invest in 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.
Carris with new administration formalized soon
The CML foresees a total of 529 million euros for the five municipal companies in 2026, with emphasis on the 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.
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.