Austerity measures on standby if casino revenue drops below MOP18 billion

Lionel Leong

The Secretary for Economy and Finance Lionel Leong revealed yesterday that the government is prepared to implement an austerity plan if monthly gaming revenues drop to less than MOP18 billion, TDM reported.
Mr Leong attended yesterday’s Legislative Assembly 2nd Standing Committee meeting, as lawmakers are currently discussing amendments to 2015’s budget. He told lawmakers that the government might curb spending if gaming revenue drops significantly.
“The government has prepared an austerity plan. If it reaches that stage, each secretary’s cabinet and departments will hold meetings and [discuss whether to] cut spending, for instance in some subsidies. But certainly those cuts will not affect citizens’ lives. Non-essential expenses include subsidies for banquets, visits to other regions and also receptions held [for officials] visiting Macau from other countries,” lawmaker and president of AL’s 2nd Standing Committee Chan Chak Mo clarified.
The Budget Law for 2015 passed its second reading last November but the government felt the need to amend it after reducing the estimated casino tax revenue it will collect from MOP115 billion to MOP84 billion.
Macau’s gaming revenue dropped for the 10th consecutive month in March. Gross gaming revenue declined by 39.4 percent to MOP21.49 billion, according to data released by the Gaming Inspection and Coordination Bureau.
When announcing his cabinet’s action plan for 2015 at the AL last March, Mr Leong acknowledged that the value of cash handouts might be “adjusted” in 2016, depending on Macau’s economic outlook and the government’s budget.
The secretary told lawmakers that, “cash handouts depend on the MSAR’s financial situation.” “We are still estimating the amount that will be given in 2016 taking into consideration our budget. There’s a possibility that the cash handout might be (…) a smaller amount than in 2015.” Mr Leong would later clarify that the cash handout value could either increase or decrease in 2016, depending on the government’s financial situation.
Yesterday, the secretary also announced that a public consultation on the Budget Framework Law will be launched in November. The legislation will enable lawmakers to better supervise the budget of major public construction works. CP