2021 budget amended amid heavy criticism

At the Legislative Assembly to propose a second amendment to the government’s
annual budget for 2021, Secretary for Economy and Finance Lei Wai Nong faced heavy criticism from lawmakers on the policies proposed for economic support of specific groups, which were included in the budget amendment.
The package comprises eight measures including financial support, tax exemptions, reduced interest on bank loans, and extension of loan repayment deadlines. The measures involve the allocation of 2.3 billion patacas from the government’s financial reserves.
A large group of lawmakers called on the Secretary to justify the measures presented that are, in some cases, already being implemented, with different government departments accepting applications.
Some lawmakers, rather than disagreeing with the measures, consider them insufficient because they do not take into account a broader spectrum of the population. They say that the measures focus too much on companies and not on people, namely those currently unemployed or underemployed.
Lawmaker Ella Lei said the government lacked an explanation as to why it had established an income ceiling for independent workers of 144,000 patacas per year as a requirement to benefit from financial support.
Lei thinks that this ceiling lacks justification and that it will be very complex for the government to verify whether an individual’s income exceeds the limit.
“This coverage for me is very insufficient. [It] does not account for those that have lost their jobs or been forced into lay off situations. It’s just capped by income at 144,000 patacas and [does] not take into account their real and current situation,” she said. Lei called on the government to implement “extra measures,” including a new round of cash handouts in the amount of 8,000 patacas to be distributed via electronic means.
Leong Sun Iok also disagreed with the measures, highlighting that their lack of precision. The lawmaker noted that local small and medium enterprises (SMEs) are supported, but the situation of the unemployed or underemployed, which he claims is of greater concern, is not considered.
Leong noted that, according to the government rules, only those who lost jobs last year (in 2020) can apply for financial support, while those who became unemployed or were laid off this year are excluded from the support. He added that we are already 10 months into 2021.
The lawmaker is also not happy that the government has presented the amendment to be passed as a matter of urgency.
“Government solicited the urgency [in process] and I know that many people are waiting for this, so I voted in favor. But I hope that in the budget for 2022 the government thinks about more precise and adequate measures,” he said. Leong also urged the government to define “plans and support measures for the upcoming times. We know that this [pandemic] is not over yet,” he said.
Similar concerns were expressed by lawmaker Song Pek Kei, noting that a limit of 144,000 patacas per year accounts for a monthly income of 12,000 patacas. This ceiling, she claims, is even lower than the one specified in applications for government economic housing.
Lawmaker Ip Sio Kai also addressed the problem of people being unemployed due to company closures.
“Many workers, due to closure of companies, could not [provide] the documents necessary to apply. There are many procedural flaws,” he said, calling on the government to find a solution that does not excluded people in need because of bureaucratic procedures.
In response to the urgency claimed by the government, lawmaker José Pereira Coutinho said that the government is abusing the process “to avoid giving more explanation and details of the plan.”
The lawmaker also asked the government to present proof of the real benefits of the measures implemented, noting that a consistent injection of money from financial reserves without any justification or consultation is not acceptable.
On the government side, director of the Financial Services Bureau Stephen Iong replied that the measures aim to benefit the groups most affected by the pandemic.
“We hope that we can relieve their difficulties, including the laid off people,” he said, adding that the six types of profession included were chosen due to being “professions regulated through licensing, [which] had to do with a balance between rights and duties.”
The government also justified the proposal’s status as a matter of urgency by saying that it helped them “to simplify the procedures and be able to hand [out] the benefits as soon as possible. We hope to [distribute] the pecuniary support […] this month,” Iong said.
According to Secretary Lei, this second amendment proposed to the 2021 budget law, now approved unanimously, is not the last. A third amendment is being prepared.
“There will be a third amendment soon, because the gaming receipts are not enough and there is a difference [between our estimation and the reality] of between 3 to 4 billion patacas,” Lei said.
The Secretary also justified the selection of particular groups by noting the need to conserve financial reserves to face future challenges, as the difficulties of the pandemic are not likely to reach an end soon.