The Portuguese Communist Party (PCP) has criticised the proposed Budget of the Autonomous Region of Madeira for 2026 (ORAM), pointing out that the document is about “propaganda, manipulation and make-believe numbers.”
In a press release, the party considers the ORAM is “an instrument that limits economic and social development, promotes inequalities and reduces investment in fundamental areas such as health and housing, but reinforces the financing of development societies.”
Their statement reads as follows:
“The Budget proposal, presented in the Regional Parliament by the PSD/CDS Government, in addition to propaganda, manipulation, and make-believe numbers, proves to be an instrument that limits economic and social development, promotes inequalities, and reduces investment in fundamental areas such as health and housing, but reinforces the financing of development societies.
According to the proposal presented, Madeirans and Porto Santo will pay, in 2026, more than 1,269 million euros in direct and indirect taxes. The Regional Government plans to collect more funds through taxes on consumption and labour, so that, in practice, each resident pays an average of more than 4,858 euros per year in taxes. Despite the propaganda about the reduction of IRS rates, the truth is that, in total, there will be a 14% increase in income tax compared to 2025.
While taxes increase, investments essential to economic and social development and the fulfillment of fundamental rights decrease. A clear example is the drastic reduction in the amount allocated to housing construction: from the 129 million euros planned in 2025, the Regional Government reduced investment to 62 million euros in 2026, 51% less. The justification given is based on the lack of resources, but, in the same budget, more than 135 million euros is set aside for debt interest payments.
Also in the area of health, there is an overall cut of around 9 million euros, while Development Societies see their funding increased by 8 million euros. This option represents a clear deviation of priorities and a departure from the real needs of the population.
At the same time, the Regional Government maintains a reduced corporate income tax rate of 30%, benefiting large economic groups, including companies that profit from food, real estate, and fuel speculation. These tax subsidies represent millions of euros that are no longer invested in essential areas such as health, housing, social protection, the environment, and sustainable economic development.
Debt service, public-private road partnerships, and development societies continue to absorb a significant share of the public purse, representing more than 20.5% of the total Budget of the Region for 2026, that is, about 479 million euros.
The budget proposal also fails to respond to the problems related to rising prices and inflation, which in the Region is already the highest in the country. The Regional Government refuses to use the instruments provided for in the Constitution and in the Political-Administrative Statute to regulate prices and combat speculation, leaving workers and families to the continuous increase in the cost of living.
This budget reveals a posture of distancing itself from the needs of workers. It does not present effective measures for private sector workers, and, as far as the Public Administration is concerned, it does not fulfill the promises of career review, reinforcement of human resources, and salary enhancement.
The PCP expresses its firm opposition to the guidelines and structures of the proposed Regional Budget for 2026. We believe that a different budgetary policy is possible, with different priorities and aimed at regional development, the strengthening of public services, and the improvement of the living conditions of the population. For the PCP, an alternative course is needed that puts the resources of the Region at the service of the workers and the people, and not of the large installed economic interests.”
Samantha Gannon
info at madeira-weekly.com
