Madeira Secures Additional €75 Million in Government Funds for 2026 State Budget

Extraordinary Funds Allocated to Madeira

The autonomous region of Madeira will receive an additional €75 million from the Portuguese mainland government, a sum that goes beyond its standard allocated state budget funds. This agreement, announced by Miguel Albuquerque, President of the Madeira Regional Government, comes as part of the ongoing discussions for the 2026 State Budget (OE2026). The funds are designated to address extraordinary costs, particularly in the vital sectors of education and health.

Agreement Reached with Mainland Government

The additional funding is the result of an agreement between the regional government of Madeira and the mainland government, led by Prime Minister Luís Montenegro. Speaking to journalists, Albuquerque highlighted that this extraordinary fund is intended to help cover the region's specific needs. Prime Minister Montenegro affirmed that the budget proposal provides 'special consideration' to the islands and their unique circumstances, especially concerning financial matters.

Context of the 2026 State Budget

The debate on the 2026 State Budget commenced on October 27 and 28, 2025, in the Portuguese parliament in Lisbon. The proposal outlines that Madeira is slated to receive €214,362,360 under Article 48 of the Autonomous Regions Finance Law for general budget transfers. Additionally, an exceptional allocation of €79,930,558 has been agreed upon for Madeira under Article 49, which pertains to the cohesion fund for outermost regions. This particular allocation addresses a 'less favorable nuance' or 'anachronism' in the current Regional Finance Law, which initially would have prevented Madeira from receiving cohesion fund transfers due to its economic growth.

Addressing Regional Financial Challenges

President Albuquerque has previously described the existing Regional Finance Law as 'unequal, unfair and anachronistic,' underscoring the necessity for such supplementary agreements. The newly secured €75 million extraordinary fund, alongside the cohesion fund allocation and regular budget transfers, aims to bolster Madeira's capacity to manage its public services and foster regional development. The final global vote on the 2026 State Budget is scheduled for November 27.