Portugal commits to four years of budget surpluses despite uncertainty

LISBON, June 17 (Reuters) - Portugal will maintain budget surpluses in each of the next four years and cut its public debt ratio despite high uncertainty over geopolitical and trade tensions, Finance Minister Joaquim Miranda Sarmento said on Tuesday.

During a parliamentary debate on the centre-right minority government's programme for the upcoming term, he said global uncertainty made "the basic assumption of balanced budgets even more critical" to protect Portugal from external shocks.

"We remain committed to budget surpluses in every year of the legislature ... and to reducing public debt," the minister said.

However, the Bank of Portugal had warned on Friday that the country - despite having a surplus of 0.7% of gross domestic product in 2024 - was expected to return to deficits in the next three years, starting with a shortfall of 0.1% of GDP this year.

The central bank said that in 2026, the deficit should rise to 1.3% of GDP before slightly easing to 0.9% in 2027.

However, Miranda Sarmento said the government "maintains the objective of having a surplus of 0.3% of GDP in 2025 and of reducing the public debt ratio to 91.5%" from 94.9% in 2024.

"This year - or in 2026 at the latest - Portugal will reach a public debt ratio below the euro zone average," he said.