The government headquarters, located on Avenida da Praia Grande
The Legislative Assembly (AL) has approved amendments to this year’s budget, including a 22.4 percent decrease on the government’s foreseen revenue, which has been reviewed from MOP154 billion to MOP119 billion. Lawmakers called for ‘cautious public spending’ as Macau’s gaming revenue has now dropped for the past ten consecutive months.
The Budget Law for 2015 passed its second reading last November but the government felt the need to amend it after reviewing the estimated casino tax revenue it will collect from MOP115 billion to MOP84 billion.
The Secretary for Economy and Finance, Lionel Leong, reiterated that there was a need to adjust the government budget to meet “current reality needs.”
On the other hand, the amended budget sees a slight increase (0,5 percent) on the government’s expenditure, which is due to reach MOP83.7 billion.
The government budget balance sees a decrease of 63.7 percent from MOP51 billion to MOP18.8 billion.
Lawmakers voiced concerns over an increase on expenditure and slammed the government for failing to not manage the budget of major public works, such as the LRT (Light Rail Transit) and the Pac On ferry terminal, in a better manner.
Pereira Coutinho asked the Secretary to elaborate on measures to control budget surplus, now that the gaming revenue had dropped. With several major public infrastructures under development, the legislator urged the government to introduce policies preventing budget exceeding.
Lawmaker Lei Cheng I also voiced concerns over public expenditure. “We need to control spending according to our revenues. If the revenues this year are not as favorable… We come to realize that this is an adequate time to take new measures,” she stated.
Ho Ion Sang added that, “I am worried most about the public administration’s spending,” and asked the government to clarify how it will manage its financial reserves.
Also worried about public spending, Leong Veng Chai claimed that the Macau Economic Services have spent MOP20 million “to redecorate their facilities.”
On the other hand, Chui Sai Cheong said that the amended budget “is realistic and pragmatic,” although he called on the government to return to the AL in June to provide further details on budget execution.
The Secretary for Economy and Finance, Lionel Leong, assured lawmakers that social benefits and the efficiency of public administration will not be harmed with an amended budget.
Mr Leong acknowledged that, “we need to find solutions to cope with the casino revenue decline.” Pledging to use Macau’s financial reserves cautiously, the secretary said that the government is negotiating investing MOP10 to 20 billion in Guangdong province in the hope for a good return. In addition, the government is also pondering investing in the Asian Infrastructure Investment Bank.
Regarding public expenditure, Mr Leong assured that the government’s plans to control spending will not affect social benefits, but pledged, “to save money” by monitoring “government souvenirs and trips overseas.”
Lawmakers yet again raised criticism over the budget exceeding in major public works, and called for a quick revision of the Budget Framework Law.
“The Budget Framework Law needs to be revised as soon as possible, and it should introduce a supervision mechanism, allowing the AL to supervise the government’s budgeting,” said lawmaker Ng Kuok Cheong.
The secretary said that, “the government is still studying its revision and once the draft is ready we will launch public consultation.” He reiterated that the Budget Framework Law needs to go through public consultation and only after that can it be submitted to the AL. Previously, while discussing his cabinet’s action plan for this year with lawmakers, Mr Leong had revealed that the Budget Framework Law could enter the legislative process within this year.
Not all lawmakers felt reassured by the secretary’s responses. Pereira Coutinho said that, “we have heard about several government commitments but we are sure these promises will be fulfilled.” “I am talking about the major public works; public revenue will decrease and we need to find alternative ways to increase our revenue,” he added.
The secretary pledged to step up efforts to increase the government’s revenue, also through promoting the creation of more creative industries.
Yesterday, the Legislative Assembly lawmakers also passed the second reading of AL’s Organizational Set Up Law, and another two regulations regarding the AL.
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