Lisbon, Nov. 13, 2024 (Lusa) - The PSD/CDS-PP leadership of Lisbon City Council presented a municipal budget on Wednesday of €1.359 billion for 2025, slightly higher than the €1.303 billion forecast for this year, the deputy mayor announced.
"The city council's budget, in essence, in what is its main structure, which is revenue from the current balance, the comparison of revenue with current expenditure, we continue to have a budget with a positive balance from that point of view, but it is also a budget that reflects a huge capital investment," said Filipe Anacoreta Correia (CDS-PP), at the presentation of Lisbon's municipal budget proposal for 2025, which took place at the Paços do Concelho.
The deputy mayor and head of Finance revealed that Lisbon's proposed municipal budget for 2025 is €1.359 billion, with €918 million for current expenditure and €441 million for capital expenditure.
Stressing that this is the fourth and last budget of this mandate, Anacoreta Correia said that the proposal presented today is "a very solid budget" by Lisbon City Council, with "very balanced accounts" and which reflects the municipality's ability to mobilise its efforts to respond to the calls of the city and the people.
As for the revenue forecast for 2025, which includes €311 million in capital and €29 million in other revenue, the mayor highlighted €1,019 million in current revenue, namely €551 million in direct taxes - property sales tax (€282 million), property tax (€131 million), municipal surcharge (€120 million) and road tax (€18 million) - €154 million in fees, fines and other penalties, €133 million in current transfers, €122 million in the sale of current goods and services, €35 million in other revenue and €24 million in property income.
"This is the first budget that forecasts current revenue of over €1 billion," emphasised the vice-president, recalling that the document for this year estimated €999 million.
The income and expenditure forecast for 2025 are "very much in line with what has been customary", emphasised Anacoreta Correia.
The budget proposal breaks down current expenditures of €918 million as follows €345 million for staff costs, €220 million for the purchase of goods and services, €162 million for current transfers, €157 million for subsidies, €21 million for interest and other charges, and €13 million for other current expenditures.
In this context, the head of Finance highlighted the €441 million in capital expenditure for investment next year, indicating that it represents "a very large percentage [of the budget], almost 30%".
The increase in investment "is a trend not just of this budget, but of this mandate", he pointed out, noting that in the previous mandate (2017-2021), there were €769 million, and in the current mandate (2021-2025) the forecast is €1.225 billion, which corresponds to an increase of €456 million.
Anacoreta Correia emphasised that "it's not just the RRP [Recovery and Resilience Plan, with European funds] that is investing grow", explaining that even in the component without European funding, the municipality's investment has increased, from €185 million in the previous term to €443 million in the current one, corresponding to an increase of €258 million.
Among the areas to be highlighted for next year, the vice-president pointed to housing, with €154 million; social rights, with €38 million, including support for homeless people (€12 million); and urban hygiene, with €38 million.
Also noteworthy is the delegation of powers to the 24 parish councils, with €126 million; mobility, with €311 million; culture, with €64 million; education, with €58 million; sport, with €8 million; security, with €22 million; and the General Drainage Plan, with €79 million.
Among the measures to be implemented in 2025 is the return of the maximum amount of Personal Income Tax (IRS) to the residents of Lisbon. This commitment has been gradually implemented since 2022, when it was increased from 2.5% to 3%, then 3.5% in 2023, and 4.5% in 2024.
"In 2025, €77 million will be returned to all Lisbon residents," said the PSD/CDS-PP leadership, estimating a total of €267 million over the four years of the mandate.
This is the last municipal budget of this mandate (2021-2025), proposed by the PSD/CDS-PP administration under the chairmanship of Carlos Moedas (PSD), who governs Lisbon without an absolute majority. If approved, it will be implemented in a municipal election year.
The PSD/CDS-PP leadership's first three budgets were approved thanks to the PS's abstention, with the rest of the opposition—PCP, BE, Livre, and Cidadãos Por Lisboa (elected by the PS/Livre coalition)—voting against.
In the municipal budget for 2024, the council has estimated expenditure of €1.3 billion, which is "very much in line" with 2023.
Among the € 1.303 billion in expenditure forecast for 2024 €, the municipality has forecast €481 million in capital expenditure, namely €403 million in investment and €78 million in financial assets and liabilities.
For 2023, the council pointed to a "growth in investment of around 15%", which could reach 455 million euros, compared to an estimate of €399 million in 2022.
Currently, the 17-member Lisbon City Council government includes seven elected members of the "Novos Tempos" coalition (PSD/CDS-PP/MPT/PPM/Aliança)—the only ones allocated portfolios and who govern without an absolute majority—three from the PS, two from the PCP, three from Cidadãos Por Lisboa (elected by the PS/Livre coalition), one from Livre, and one from BE.
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