Macao SAR government will again resort to the SAR’s financial reserve for its 2023 fiscal year budget that has been submitted to the Legislative Assembly, and it will draw MOP 35 billion from the reserve to accommodate next year’s budget, which includes a five-per cent increase from this year’s.
The city’s financial reserve in September was MOP 562.9 billion, a month-on-month decrease of MOP 17.1 billion, according to Secretary for Economy and Finance Lei Wai Nong. The amount was also a decrease of more than MOP 100 billion compared to February 2021’s figure, which reached MOP 663.5 billion.
The 2023 fiscal year budget proposal indicates that the account for next year will continue to be in deficit and the government has said there is a possibility of revision in the budget, in terms of revenue and expenditure. Currently, the government foresees a revenue of around MOP 105.1 billion and expenditure of about MOP 104.4 billion, which will leave a balance of MOP 694 million.
The budget proposal recognises the gambling revenues have suffered a sharp decline this year but, on the other hand, foresees an increase in the number of tourists in 2023, even pointing out an expected gross revenue of MOP 130 billion next year.
This forecast has taken into account the re-issuance of electronic visas for mainland Chinese tourists visiting Macao and the gradual resumption of tour excursions from mainland China.
In the 2023 fiscal year budget, the Macao government will continue its public welfare measures, budgeted at MOP 20.9 billion, including its annual “wealth-sharing” cash handout, health subsidy, electricity bill subsidy for residential units, pensions and various subsidies and allowances for education and social support.
As part of its cost containment strategy, the government said there will be no salary increase for civil servants next year and it will continue the suspension of MOP-7,000 allocation for the non-compulsory central pension scheme, since there was no remaining balance in this year’s budget execution. In addition, a series of deduction measures and tax exemptions will continue to apply in the coming year, Rádio Macau reported.
