The Macau government expects that 2020 will be a balanced year in terms of the budget, with cuts to expenditure to compensate for the expected slowdown in revenue.
The budget proposal, presented and passed on the first reading last week, is currently under analysis at the second standing committee of the Legislative Assembly (AL) and proposes cutting total expenditure in order to keep up with marginal growth on receipts that are expected to grow by 0.3% to a total of MOP122.7 billion, the government estimates in the bill.
The reduction in government expenditure is expected to hit 2.6%, taking the total to MOP100.7 billion, a figure that represents a saving of MOP2.65 billion in 2020. The amount will contribute to next year’s forecast surplus of MOP22 billion.
Revenue from gaming unchanged
At the Legislative Assembly, Secretary for Economy and Finance, Lionel Leong also noted that the government expects the government revenue drawn from gaming taxes for the upcoming year to remain the same as in 2019 at about 91 billion patacas.
Leong added that the figure comes directly from the projected gross gaming revenue of 260 billion patacas, a figure that if confirmed would represent a further gaming slowdown than that already recorded in the first 10 months of the year. As of the end of October, gaming revenue was down 1.8% year-on-year compared with the same period of 2018.
Government rents top concerns
The rental amounts paid by the government to private owners for spaces and the exponential increase in the budgeted amount to support the 6th Ministerial Conference of the Forum of Economic and Trade Cooperation between China and Portuguese-speaking Countries were two of the topics that gathered attention and concern from the lawmakers regarding the budget bill for 2020.
Regarding the first issue, the lawmakers expressed concern over a significant increase in the amount the government must give to private owners for space occupied by public services and facilities, which is expected to grow next year by 20% to a total of MOP1.2 billion.
Equally concerning is the budget hike for the Ministerial Conference, which may climb to as much as MOP231 million. In 2018, the Conference cost MOP87 million, a figure that will almost triple in 2020.
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