The Portuguese Government is set to cut more than €200 million in spending on medicines and clinical consumables, according to an explanatory note for the 2026 State Budget, which also foresees a €136 million reduction in goods and services expenditure.
The document, seen by press, estimates a €208 million (-6%) drop in purchases of medicines and clinical materials in 2026, reflecting a 10% overall adjustment outlined in the budget proposal. It also notes that the increase in the consumption of medicines and medical supplies recorded in 2025 within the National Health Service (SNS) stems from rising healthcare activity, particularly surgery, as well as population ageing and the introduction of innovative therapies, notably in oncology, infectious diseases, and chronic conditions.
Speaking to journalists, health economist Pedro Pita Barros said it was unclear how the planned cuts could be reconciled with higher healthcare activity.
“It means that such a cut would only be compatible with increased activity and higher medicine use if the prices at which they are purchased fall,” he explained. “If I’m going to spend less but consume more, then prices will have to drop enough to make up the difference.”
Pita Barros suggested that part of the targeted 10% savings on goods and services might be linked to reduced spending on outsourced staff (“tarefeiros”), which could instead be reallocated to personnel costs. These are set to rise by €717.8 million in 2026, to a total of €7.77 billion, compared with €7.05 billion in the 2025 budget, and €7.4 billion in the revised 2025 estimate (+5%).
However, he questioned whether the 10% cut could be justified solely through such adjustments, arguing that some “price compression” would likely be required. “It remains to be explained how they expect to achieve lower average prices in what they purchase, either through cheaper prices or by switching to less expensive medicines.”
“The feeling one gets,” he added, “is that the decision was made somewhat arbitrarily, someone thought it would be good to save this amount, and only later will they figure out how to do it.”
The economist also described the health budget as “somewhat fictional,” questioning how it will actually be distributed within the SNS.
“It’s important to understand whether the projected revenues for the SNS will actually offset the expected expenditure,” he said, warning that “if they’re using the planned 2025 expenditure as the base for 2026 increases, rather than the real projected spending, we’re once again entering the familiar debate about under-budgeting.”
Pita Barros further noted that the explanatory note fails to clarify the source of the SNS’s €1.29 billion in projected own revenues: “I think the only reasonable assumption is that these will come from the usual capital injections by the Ministry of Finance.”
According to the budget document, SNS revenues, which fell by 3.4% (-€562 million) in 2025 compared to initial projections, are expected to rise by 6.2% (+€996 million) in 2026. This increase is mainly due to higher transfers from the State Budget to the Health Programme, forecast to grow by €384 million (+2.7%) in 2025 and €472 million (+3.2%) in 2026 relative to the estimated 2025 execution.
In terms of taxes, contributions and fees (including user charges, social revenue and fees received by the National Institute for Medical Emergency, INEM), the document predicts a €32 million (+9.7%) increase in 2026.
As for SNS expenditure, following a 3.4% rise (+€572 million) in 2025 compared to initial projections, it is expected to grow by 4.5% (+€777 million) in 2026. Personnel costs are forecast to increase by 5.2% (+€375 million) next year.
