Gov’t imposes austerity in public departments to save MOP1.4 billion

The Public Administration and Civil Service Bureau headquarters

The Macau government announced yesterday that it has imposed austerity measures in all of its public departments in order to tighten fiscal spending. As a result, spending cuts totaling MOP1.4 billion will be made in daily operations and unnecessary purchases. However, budgets allocated for livelihood, social welfare and Public Investment Plan (PIDDA) projects will not be affected.
The Office of the Secretary for Economy and Finance, Lionel Leong, explained in the announcement yesterday that the preplan was launched because the monthly gaming revenue has not lived up to estimates.
According to the Gaming Inspection and Coordination Bureau, gross gaming revenue in August plunged 35.5 percent year-on-year to MOP18.6 billion, bringing the total revenue of the first eight months to MOP158.88 billion. This means that the monthly average has fallen below the “red line” of MOP20 billion, hence not achieving the minimum estimate stipulated in the Budget Amendment Law for the fiscal year 2015.
In anticipation of the possibility that annual income might fail to meet budget estimates, the administrator had prepared a plan of austerity beforehand, which could save up to MOP1.4 billion within the public sector.
As instructed by the Chief Executive, each governmental department, along with certain organizations, are required to freeze 5 percent of their budget expenditure in assets and services purchasement – which is mainly for the purchase of supplies or consumables in daily operations. They will also be required reduce non-PIDDA investment expenditure by 10 percent.
The Office further stated that, even prior to the CE’s austerity order, public departments had been requested to review and reduce their spending, as well as to manage their budgets cautiously, “especially expenses in business trips, unnecessary renovation and decoration, research services, publicity, celebration activities, and souvenirs.”
The Secretary for Social Affairs and Culture, Alexis Tam, told media at a city library’s opening yesterday that the government “would definitely not [reduce its] input into education, healthcare, culture and social welfare.” On the contrary, Tam guaranteed that investment in those areas could be increased.” However, he revealed that expenditure involved in hosting large-scale celebrative events and shows is “likely to be reduced.”
The government has cut nearly one-third off its expenditure for hosting the annual Chinese National Day performance this year. As more sizable city events approach in fall, the secretary emphasized that “organizers need to reflect on the celebrative activities’ cost-effectiveness to see whether they have generated satisfying results.” When asked whether the government had spent extravagantly before, he said, “I think we could do better.”
The official further admitted that his Secretariat had been more aware of public spending and pledged to carry forward the attitude of frugality, not only this year, but also in the coming years. He commented, “The saving goal of MOP1.4 billion is not difficult to achieve, as it is shared by all five secretariats.”
Meanwhile, authorities continue to assure the public that “the SAR’s fiscal situation remains very stable and that its sound fiscal reserve system is adequate to cope with any emergencies or economic fluctuations.” However, the gross gaming revenues recorded so far this year are 36.5 percent lower than a year ago.
BY