Public spending rises 4.9% to MOP53.2 billion

[Photo: Renato Marques]

Macau’s public spending rose 4.9% year over year to MOP53.2 billion in the first seven months of the year, driven primarily by higher spending on social assistance and subsidies, according to official data.

Social spending increased 14.7% to MOP31.3 billion, partly reflecting the introduction of a MOP54,000 subsidy for children up to three years old.

The annual budget also provides tax incentives for the financial sector and a stamp duty exemption on first-home purchases of up to MOP6 million.

Meanwhile, spending on public works under the Investment and Development Expenditure Plan (PIDDA) fell 9.3% to MOP8.75 billion, broadly in line with the 8.6% decline projected in the annual budget.

Spending on public employees also decreased 1.3% to MOP9.25 billion, as government salaries remained unchanged for the second consecutive year.

Current revenue increased 8.6% to MOP67.9 billion during the period. Gaming taxes rose 9.3% to MOP58.3 billion, accounting for 84.6% of total current revenue.

According to the Financial Services Bureau (DSF), budget execution reached 48.7% of the amount projected for the full year.

The figures indicate that the government continues to maintain a fiscal surplus despite higher social spending, with gaming revenue remaining the dominant source of public income. LV