2023 budget ready for approval, committee unphased by GGR forecast

The 2023 Budget is ready for final reading and approval at the Legislative Assembly (AL). Yesterday, the Second Standing Committee of the AL, who was analyzing the bill in detail,  signed the final opinion. This means the bill will progress to a plenary session, yet to be scheduled, for voting.

In a media briefing held after the committee’s final meeting on this matter, the chairman, lawmaker Chan Chak Mo, highlighted the fact that this budget is, once again, a deficitary one, making the government resort once again to the special financial reserve account.

As announced by the Secretary for Economy and Finance, Lei Wai Nong, this time the government is withdrawing some 35.6 billion patacas from the reserves to cope with the low tax yield caused by the poor performance of the local gaming industry.

Nonetheless, the same budget document forecasts a gross gaming revenue (GGR) in 2023 to reach as much as 130 billion patacas. This is the same amount that was forecasted for this year, with the actual revenue to fall far short.

Contrary to the previous year, and notwithstanding the failed forecasts from the previous years, this time the lawmakers who compose the committee and the AL seem to be generally less concerned with the figure.

Questioned by the media on whether the figure raised any concerns in the committee, Chan said that although the figure is considered “optimistic” by the majority, they believe that it is still possible to achieve this result at the end of next year, depending on how the “situation evolves” and when the resumption of tour groups and visas begin producing effects, he said.

Admitting that the easing of Covid-19 restrictions and potential resulting impact on the economy were not discussed at the committee meetings, Chan said that the most important part is “to see how things evolve next year and if, as expected, visitors’ figures increase.”

He also noted that “we need to observe if the new concessionaires will be able to attract any clients from abroad” as the new rules clearly state, and result in better performance by the gaming industry.

In the calculations made by the government, the government will reach the end of 2023 with a positive balance of approximately 600 million patacas, Chan remarked.

no salary raises

In the same briefing Chan also discussed the fact that, yet again, there will be no salary increases for civil servants in 2023.

The chairman noted that although there are no salary rises for civil servants the total spending on public service wages has increased from 2022 to 2023. Chan said that the government explains this increase by reference to career promotions that cause changes in the salary index and, consequently, on the budget.

It is budgeted that the government will spend 27.9 billion patacas in this way.

The budget for PIDDA (Macau government’s Investment and Development Expenditure Plan) will also increase by 3.9 billion patacas, Chan said, noting that for 2023, the PIDDA has a total of 233 projects, including 44 new ones.

Support measures for the residents unchanged

The 2023 budget will not change the so-called measures of support to the residents, with the continuing of the “wealth partaking scheme” that includes annual cash handouts and health vouchers to residents.

In both cases, the amounts remain unchanged with each permanent resident to receive in 2023 a cheque of 10,000 patacas while non-permanent residents will get 6,000 patacas. As for the health vouchers, the amount will continue to be 600 patacas per resident.

According to the chairman of the Second Standing Committee of the Legislative Assembly, Chan Chak Mo, in 2023 the measures of support to the residents will total 20.9 billion patacas, which adds another 2.8 billion patacas to tax exemptions and the reduction of taxation to professional income.

No plans have been drafted for new rounds of support to the residents via electronic consumption. This is currently the fourth round of this type of financial support measure, extended until June 30, 2023.

The Secretary for Economy and Finance, Lei Wai Nong, had previously said during the debate of the Policy Address for 2023 that these expenses had not been included in the budget for next year. RM