Lisbon City Council proposes €1,463 million municipal budget for 2027

The Lisbon City Council presented its proposed municipal budget for 2027, outlining a total expenditure of €1,463 million. This figure represents an 8.8% increase over the €1,345 million planned for 2026. The current municipal administration is led by the PSD/CDS-PP/IL coalition under Carlos Moedas. Gonçalo Reis, the Vice-President of Lisbon City Council and Head of Finance, stated that the budget is one of growth and is balanced, prudent, and without shocks.

Focus on housing and urban development

A significant portion of the proposed spending is directed toward housing and urbanism, which has a budget of €167 million for 2027. This marks a 12.9% increase compared to the €148 million allocated for 2026. Within this sector, €48 million is designated for the conservation, rehabilitation, and maintenance of municipal housing. Additionally, the municipality plans to provide 476 houses for rehabilitation or construction, including 98 in Bairro Padre Cruz, 160 in Paços do Lumiar, and 72 in Vila Dias.

The "De Volta ao Bairro" program is intended to deliver 107 houses in 2027, contributing toward a total goal of 700 houses. The proposal also includes support for 1,100 families with rent payments. While Gonçalo Reis noted that new models for public-private partnerships for affordable housing are being studied, he clarified that these have no budget translation for next year.

Infrastructure and urban services

The budget allocates €203 million for infrastructure and maintenance, which includes funding for the Lisbon General Drainage Plan (PGDL). For urban mobility, the municipality has allocated €80 million for the Carris company, with plans to acquire 140 electric buses. Other transport projects include the extension of the 15E and 16E tram lines and the launch of the MetroBus project connecting Lisbon to Oeiras and Amadora.

Public services and hygiene also receive substantial funding. The proposal includes €85 million for education, €49 million for urban hygiene, and €48 million for culture. To support urban cleanliness, the municipality plans to invest €3.5 million in cleaning reinforcement and €1.2 million in collection equipment, alongside plans to hire 100 additional street cleaners. Furthermore, the city intends to expand the 30+Bici zones to 15 more neighborhoods and maintain free passes for resident youth and seniors.

Financial outlook and local governance

The municipality expects to collect €81 million from the tourist tax in 2027. To fund various initiatives, the municipality plans to contract a loan of €292 million until 2029, with an expected loan impact of €82.1 million in 2027. The budget also includes €99 million allocated for the 24 parish councils (juntas de freguesias).

The current administration, led by Carlos Moedas, operates in a council where the 2026 budget was supported by the Chega party, as the administration lacks an absolute majority in the 17-seat council.

Glossary

• MetroBus — A system that functions in a Metrobus regime. It connects the municipalities of Coimbra, Miranda do Corvo, and Lousã.
• tourist tax — A form of tax aimed at generating revenue from tourists or the tourism industry. It can be used to mitigate demand on infrastructure, address environmental impacts, or regulate tourist flow and behavior.