Gov’t reports low budget execution efficiency in 2019

The government budget execution efficiency in 2019 was low due to authorities’ inability to invest in various projects, according to the Second Standing Committee of the Legislative Assembly (AL).
Yesterday, the Second Standing Committee of the AL discussed the budget implementation efficiency of 2019 with several government representatives, including the Financial Services Bureau (DSF), the Environmental Protection and Energy Conservation Fund, the Industrial and Commercial Development Fund, the Welfare Association of the Public Security Police Force (Obra Social da Polícia de Segurança Pública), the Mortgage Loan Scheme, and other organizations.
In 2019, the DSF paid East Asia Airlines Limited 220 million patacas as compensation for the company having to relocate its helicopter maintenance depot to Macau International Airport. In total, the compensation amounted to 535 million patacas. The remaining balance is expected to be settled this year.
That year, the finance authority used 2.4 billion patacas of a joint expenditure budget of 3.2 billion patacas. A 1.2 billion patacas, meanwhile, is reserved for the Jiangsu-Macau Cooperation Zone project, which is currently awaiting approval from the central government.
As for the Environmental Protection and Energy Conservation Fund, the budget implementation rate last year was only 14%. The fund only spent 3.5 million patacas of their 24.5 million pataca budget. According to AL committee chairman Chan Chak Mo, the department received 49 applications for subsidies last year, 35 of which were not approved.
In addition, the environmental protection fund reserved 19 million patacas for the recycling industry as subsidies for the purchase of vehicles. However, only 190,000 patacas was spent. They received 12 applications in total for subsidies from this specific fund, but only one was approved. The government explained that many recycling business operators were not using legal land, and that if the government subsidized those businesses they would be supporting illicit operations.
The Industrial and Commercial Development Fund budget for last year was 2.3 billion patacas.
The department explained that 1.42 billion patacas from the budget was paid as subsidies for the China-Portuguese Speaking Country Development Fund.
In 2019, the PSP Welfare Association had a budget of 50 million patacas, but the execution rate was approximately 40%. The association has over 6,000 members. Approximately 7 million patacas was reserved for procurement, management, shopping and transportation for the association’s canteen.
However, the association was unable to implement the plan. In 2019, the association planned to develop two of its own properties into clubs for the association but eventually these two projects were not approved. In addition, the association had also planned to rent six of its shop properties but was unable to rent them.
Regarding the fund for the Mortgage Loan Scheme, the government had reserved a budget of more than 2 million patacas last year. This fund is under the administration of Macao Postal Savings. One part of the budget was designated to sponsoring civil servants to purchase houses.
However, the city’s new Affordable Housing law suspended the relevant application. The fund is currently handling the last 199 applications.
The Building Maintenance Fund had a budget of more than 40 million patacas in 2019, with an execution rate of 58%. They only received a small number of applications asking for money to subsidize illicit building demolitions. In addition, the building maintenance fund received no applications for money from the low-rise building inspection subsidy scheme.