National Parliament Approves New Budget Framework and Public Financial Management Law
On April 1st, 2025, in a regular plenary session, the National Parliament approved Proposed Law no. 14/VI(2nd) – Law on the Framework of the General State Budget and Public Financial Management, with 38 votes in favor, 1 against, and 19 abstentions. The Diploma, presented by the Government through the Ministry of Finance, replaces the previous Law No. 2/2022, of February 10, and is part of the Public Finance Management Reform, provided for in the Program of the IX Constitutional Government.
The new law aims to strengthen efficiency, transparency, and discipline in public financial management by introducing mechanisms that improve budget planning, alignment between budgeting and strategic planning, and accountability. Key innovations include the introduction of a budget strategy statement, the limitation of entities authorized to take out loans, the exclusion of budget balances from entities without financial autonomy, and the strengthening of program-based budgeting focused on concrete results.
In her speech after the vote, Finance Minister Santina José Rodrigues F. Viegas Cardoso emphasized the importance of the discussion process with the National Parliament, both in general and in specific terms, emphasizing that "the requests for clarification presented by the Deputies, especially from the opposition bench, contributed to the improvement of this legislation." The Minister also added that "the Government will continue to rely on Parliament's support in the implementation of this Law, as well as in the analysis of the 2026 General State Budget and the 2024 General State Account, both being prepared based on this new legal framework."
After approval in the final global vote, Committee C will draft the final version of the diploma before sending it to the President of the Republic for promulgation and publication in the Official Gazette.
The plenary session was chaired by the President of the National Parliament, Maria Fernanda Lay, and in addition to the Minister of Finance, it was also attended by the Vice Minister of Finance, Felícia Claudinanda Cruz Carvalho, and the Vice Minister of Parliamentary Affairs, Adérito Hugo da Costa.
