Portuguese parliament rejects budget bill, snap election looms

Portugal's Prime Minister Antonio Costa gestures during the debate on the 2022 state budget draft in first reading at the Portuguese Parliament, in Lisbon, Portugal, October 27, 2021. REUTERS/Pedro Nunes

LISBON (Reuters) - Portugal's parliament rejected the minority Socialist government's 2022 budget bill on Wednesday as the hard left sided with the conservative opposition, in a move likely to trigger snap elections in coming months.

Lawmakers voted 117-108 with 5 abstentions to throw out the bill that envisaged income tax cuts for the middle class and increased public investment to spur post-pandemic recovery, while reducing the deficit to 3.2% of gross domestic product from 4.3% in 2021.