Gov’t to spend extra MOP6b in new round of consumption subsidy

Another round of consumption subsidy will be issued later this month as part of the second MOP10 billion stimulus the government has announced to combat the effect of the pandemic,”

The government announced over the weekend that it would spend a further MOP5.92 billion on consumption subsidies.

Under the plan, all permanent or non-permanent local residents registered for the third-round consumption subsidies are eligible for the new consumption boosts. With no prior registration needed, MOP8,000 will be automatically paid into the bank accounts of eligible residents. The maximum amount to be used each day will be MOP300.

This second subsidy is commonly referred to as “the second MOP10-billion boost.”

The government had not released details on the scheme despite the fact that parliament had approved the subsidy. The government had only outlined the scheme as “having general subsidies included.”

The new consumption subsidy will be available from October 28 this year to June 30 next year. The new funds will be deposited either after a recipient has used both the start-up and discount amounts of the current consumption subsidy, or when the current subsidy period ends, whichever occurs first.

Registration for the current phase of subsidy is open and will close after January 13, 2023. The validity period for use will end on February 28, 2023.

Unlike the current and previous consumption subsidies, the new subsidy will not be separated into start-up and discount amounts. The entire sum will be at the disposal of the registrants, meaning they will not need to use their own money to enjoy the whole subsidy.

The scope of use will be identical to that of the current consumption subsidy.

Details of the new consumption subsidy were based on the plan’s predecessors, Tai Kin Ip, director of the Economic and Technological Development Bureau (DSEDT), said in a press conference.

He said 90% of previous consumption subsidy amounts were under MOP300. Furthermore, the current and the additional rounds of subsidies will have overlapping validities, “technically different caps cannot be set,” Tai said.

With the government only intending to use about 60% of the MOP10 billion received from the parliament, Tai was asked where the remainder would go. Tai pledged the money would be saved in the government’s account and admitted it may be used for disease control activities – such as citywide tests as well as resource procurement and mobilization – when there are future outbreaks.