In the proposed budget for next year, the government is retaining the cash handout at MOP10,000 and estimates the gross gambling revenue (GGR) at MOP130 billion.
The budget proposal, which must pass through parliament, has been uploaded without fanfare by the legislative body to its website. A plenary meeting will be held November 10 for the first reading of the bill.
As of press time, no breakdown for the budget had been announced.
The government highlighted that the budget will be the third deficit budget in three years, meaning that the forecast income would not afford the year’s spending. Despite all government entities being ordered to shrink expenditure, the government has also decided to extend its policy of retaining certain social welfare and expanding investments in public projects.
Taxes will either be waived or lowered in the coming year. For example, revenue tax, stamp taxes for insurance contracts, bank businesses, auctions and performances, as well as for advertisement or promotional material placements or posting will be waived. Tourism tax will also be waived for restaurants.
Professional tax will be lowered for 30% with a tax exemption level at MOP144,000. Meanwhile, 60% of the professional tax paid by Macau residents in 2021 will be refunded, with a ceiling at MOP14,000.
All tax waiver, reduction and refund amounts will equate to an estimated MOP2.8 billion.
Apart from the cash handout, the government will also retain a series of financial subsidies, including but not limited to medical vouchers, electricity subsidies for residential units and continuing education subsidies. The general financial support will cost an estimated MOP8.4 billion.
Subsidies per application, such as student and elderly subsidies, are estimated to cost about MOP12.5 billion, raising the price tag for financial support to MOP20.9 billion.
On this ground, the government proposes to withdraw about MOP35.6 billion from the city’s fiscal reserves to even out the budget. As of this year’s third quarter, the city has MOP563 billion in fiscal reserves, Secretary for Economy and Finance Lei Wai Nong told the parliament last week.
In its introductory document on the bill, the government defended its optimism on the GGR estimate with mainland’s approval to resume group tours to Macau and e-application for travel endorsement for mainland residents.
Previously, the government has said that the normal travel with the mainland should resume between October to November. However, with Macau having just relaxed after a small outbreak and nearby Guangzhou having an outbreak that is described by provincial government officials as the worst in three years, it is unclear if the resumptions will happen sooner or later.
Civil servants will see another year of frozen salaries. Current denomination of salary is MOP91.
