Gov’t forecasts 2024 deficit despite MOP200b on expected gaming revenues

The government is preparing to forecast another deficit in 2024, the Chief Executive (CE), Ho Iat Seng, admitted at the Legislative Assembly (AL) Friday, where he was to participate in the last Q&A session with the lawmakers of this legislative year.

At the session, responding to an inquiry from lawmaker Ella Lei, the CE said next year’s budget is still expected to have greater expenses than revenues, hinting the budget could be some MOP10 billion short of being balanced.

This is despite the government’s forecast of about MOP200 billion in gaming revenue, which is expected to grow 53.85% compared to 2023.

The CE’s statement has a direct consequence upon the residents’ Central Provident Fund accounts. The government ended the regular annual transfer of MOP7,000 in 2020 as these fund injections are attached to the government’s accounts surplus.

The CE said that despite next year’s budget still being in the red, the government is not cutting any population livelihood benefits, which will remain untouched for 2024.

The topic seems to anticipate debate to come later this year when the CE will present the Policy Address for 2024 (LAG24), as several lawmakers have previously called for the resumption of the injection of the money into the provident fund accounts to support those of an older age (above 65 years old), who can withdraw such funds immediately.

While the policies of Ho’s predecessor, ChuI Sai On, focused on the accumulation of funds in the government accounts with some of the surplus to be invested and some to be shared among the population via subsidies and providence funds.

Ho’s government meanwhile directs the spending of government earnings, especially those from the gaming industry, into building new facilities.

During the Q&A session, the CE took questions from 31 members of the AL.

Other topics discussed included consumer prices, employment, education, and talent development policies, preparations for the national games, development of the cultural and tourism industry, population support policies, protection of consumer rights, the wealth partaking scheme, caring for the elderly and for the disadvantaged, public administration reform, e-government, transportation and environmental protection.