Lionel Leong yesterday at the AL (center)
The Legislative Assembly (AL) yesterday afternoon passed the government’s budget for the next fiscal year on the first reading. Lawmakers have raised eyebrows over the administration’s increased spending against the background of possible falling income.
The authorities expected to take in a total of around MOP103.25 billion next year, an amount 13.9 percent less than the target revised in April in response to the volatile gaming economy.
The Secretary for Economy and Finance Lionel Leong explained that the authorities’ estimate was responsive to the expected MOP70 billion plunge in next year’s gaming tax, in contrast to this year’s forecast MOP84 billion.
Albeit the major source of income is expected to narrow in the near future, the government has broadened its budgeted spending by 1.5 percent to roughly MOP85.038 billion.
“We hope to ensure social welfare is unaffected,” explained Leong. “Therefore, we continue to pour money in the medical and educational sectors.”
He added that the prospective increase was concluded based on promised initiatives to enhance civil servants’ remuneration, pensions and other financial support for society.
Lawmaker Lei Cheng I pointed out one of the government’s hefty financial burdens which has remained long unaddressed – money spent on office rents for accommodation of government agencies in private buildings owing to land scarcity.
She indicated that the spending is expected to grow around 38 percent next year from this year, which has already seen a 69.1 percent increment from the preceding year.
According to the secretary, the authorities were pressed for increased rent by their landlords, with around MOP700 million spent annually. However, this expenditure will rise to MOP1 billion next year.
Leong said that only a new establishment big enough to house public services could relieve their plight. The authorities have reserved land for construction of administrative facilities in the prospective reclaimed area.
With the execution rate of the government’s investment plans long hovering under 50 percent, the authorities have reduced the budget by almost one quarter for next year to roughly MOP11.07 billion from MOP14.68 billion this year.
The official explained that this was not due to the expected drop in earnings. Instead, he said that the estimate came after multiple talks with the Secretary for Transport and Public Works, Raimundo Rosário, who aimed to “enhance the rate based on the actual circumstances.”
Lawmaker Mak Soi Kun was critical of the government’s plans. Having a construction background himself, he reckoned that the authorities should pursue local economic improvement with deepened investment under the slowdown of the global economy.
Additionally, the sum of money earmarked for certain organizations is said to have grown by 4.8 percent from this year’s predicted amount to MOP11.38 billion. The government’s comprehensive spending for next year was budgeted at around MOP91.36 billion
administrative revamp authorized
The legislature also passed a bill on the second reading that allows the Cultural Affairs Bureau and Sports Development Board to respectively take on part of the Civil and Municipal Affairs Bureau’s functions from the beginning of next year. The split in function is expected to make the public service less bureaucratic.
on the lawmakers’ agenda
COOPERATION Lawmaker Ng Kuok Cheong has urged the administration to join the Trans-Pacific Partnership, which was inked on October 5 by 12 countries. He reckoned that the region, with its history of free trade, should explore the possibility of a presence in the partnership given possible conditions to overcome thresholds set out in the agreement. Despite China’s absence in the deal, the lawmaker called on the government to approach Beijing to discuss its entry into the pact that is expected to create the world’s largest free trade area.
ENVIROMENT Zheng Anting called on the authorities to hammer out long-term strategies to make the region more environmentally friendly. In his opinion, it is crucial to come forward with measures to shore up local recyclers, which have been left facing financial and geographical obstacles. In addition, he urged the government to move forward on its agenda of dealing with inert waste and aged vehicles. He also expressed wishes to see specific measures rolled out to encourage waste reduction.
EDUCATION Following a mid-year survey that has found local youngsters tend to sacrifice their dreams for better-paying jobs, lawmaker Lau Veng Seng urged the government to encourage self-discovery and pursuit of dreams among middle and primary school students through education. He thought that it would be hard to achieve economic sustainability with possible loss of talents as a result of the worrying trend.
airport to return part of loan this year
The Macau International Airport Company will pay off its approximately MOP1.7 billion debt in phases to the government. The first payment of MOP86.39 million will be delivered within the year and followed by another equivalent amount in the first phase of next year. The rest of the repayment will be subject to the company’s future financial standing, according to the financial authorities. It was also said that the last payment could only be made after 2023 in the third stage.
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