The document is now set for discussion in a full parliamentary session.

This decision followed a hearing with Finance Secretary Duarte Freitas, who highlighted the return to budget surpluses after three consecutive years of deficits. He noted that the region’s finances were still impacted by post-pandemic recovery and global instability, including the war in Ukraine and the conflict between Israel and Hamas.

In 2023, Madeira’s total revenue reached €1.666 billion, while expenditure stood at €1.624 billion. The region’s GDP grew by 14.2%, and its public debt ratio was 72.2% by year-end. However, direct public debt increased by €232.3 million compared to the start of the year, reaching nearly €4.7 billion. The rise was mainly due to the transfer of debt from regional development companies and the public firm Madeira Parques Empresarias.

The government also applied the maximum 30% tax reduction allowed by the Regional Finance Law up to the fourth income tax bracket (IRS) and maintained similar cuts for corporate tax (IRC) and the local surtax (derrama). The unemployment rate dropped to 5.9%, while employment reached a record 129,500 people.

The region also posted a new financing capacity of €25.3 million. Freitas credited sound fiscal policy and post-pandemic economic recovery for the positive outcomes, emphasising that improving quality of life depends on both competitive taxation and robust public services.

While the account was approved without dissent, opposition parties (PS, JPP, and Chega) criticised the government, led by Miguel Albuquerque, for not extending the 30% tax reduction beyond the fourth income bracket, despite higher-than-expected revenue.