The Macao government’s budget proposal for the 2025 financial year was unanimously passed by legislators yesterday afternoon, multiple media outlets report.
During a Legislative Assembly session yesterday, Lei Wai Nong, the outgoing secretary for economy and finance, introduced the specifics of the budget, which projects the government will rake in a revenue of approximately 121 billion patacas (US$15 billion) and spend around 113 billion patacas (US$14 billion), leaving a surplus of some 7.74 billion patacas (US$961.5 million).
The economic tsar pointed out that the 2025 budget would be the second one since the Covid-19 pandemic to be balanced. During the pandemic, which severely curtailed economic activities, the authorities relied on financial reserves to make up for the deficit.
In terms of government spending, the new budget proposes that around 25.7 billion patacas (US$3.1 billion), or 22.74 percent of overall spending, be designated towards a range of social welfare measures that will benefit residents, including the Wealth Partaking Scheme, subsidies for water, electricity and healthcare, as well as benefits for the elderly and disabled.
The new budget will also see the government continue various tax exemption measures, which are expected to cost a total of 4.8 billion patacas (US$596 million). In addition, 6.8 billion patacas (US$845 million) will be allocated to the central provident fund.
[See more: Outgoing Chief Executive Ho Iat Seng reflects on tenure, presents 2025 budget bill]
Meanwhile, the yearly gross gaming revenue (GGR) for 2025 is expected to hit 240 billion patacas (approximately US$29.9 billion).
Legislators expressed concerns over whether or not this forecast was realistic in light of the fluctuating monthly GGR and the performance this year, but Lei responded by stating that the yearly GGR prediction was made “after careful consideration” and noted that the expected increase in tourism numbers next year would help to bring the SAR to this target.
“The total visitor arrivals are likely to reach 36 million next year,” Lei said. “The current ratio of gaming revenue is 76 percent from mass gaming. It means that when we have more customers, our gaming tax will increase accordingly.”
Analysts from Citigroup recently projected even higher gambling revenues, estimating next year’s GGR at 245 billion patacas (US$30.4 billion).
They also drew attention to the government’s historical tendency to underestimate GGR, pointing out that the government has failed to accurately forecast GGR in nine out of the last ten years (from 2011 to 2019 and in 2023).
