The Legislative Assembly (AL) yesterday passed the government’s 2024 budget bill, according to which the government expects to run a budget surplus of 1.17 billion patacas next year.
Next year would be the first time that the government could achieve a formally balanced budget, without having to allocate money from its financial reserves, after the three-year COVID-19 pandemic.
Because of the severe adverse impact of the COVID-19 pandemic on the local economy, the government recorded a budget deficit for three consecutive years from 2020 to 2022. In each of the three years, the government allocated money from its financial reserves to fill the respective deficit so as to keep a formally balanced budget.
Macau confirmed its first COVID-19 case on January 22, 2020.
Macau’s fiscal and calendar years are identical.
The government said earlier this year that its 2023 deficit would be smaller than the initially-projected level thanks to the recovery of Macau’s gross gaming revenue (GGR) since early this year.
The 2024 budget bill’s outline was passed during a plenary session of the legislature last month. The legislature’s 1st Standing Committee held several meetings to review the bill.
Secretary for Economy and Finance Lei Wai Nong attended yesterday’s plenary session when the bill was voted on article-by-article in its second and final reading.
According to its 2024 budget bill, the government expects its revenues to reach 107.11 billion patacas next year, while its expenditure next year is expected to amount to 105.94 billion patacas.
Consequently, according to the bill, the government expects to have a budget surplus of 1.17 billion patacas next year.
The government expects next year’s GGR to reach 216 billion patacas, because of which its direct gaming tax revenue is expected to amount to 75.6 billion patacas, i.e., 35 percent of the predicted GGR in 2024.
Macau’s gaming operators pay 35 percent of their gross gaming receipts as direct tax to the government.
According to the 2024 budget bill, the government will raise public servants’ salaries from 91 patacas to 94 patacas per salary point, an increase of 3.3 percent, from next month.
Financial intelligence office to merge with police
Meanwhile, yesterday’s plenary session also passed a government-initiated bill that will merge the Financial Intelligence Office (GIF) with the Unitary Police Service (SPU) from February 1 next year.
The bill’s outline was passed during a plenary session in August. The legislature’s 2nd Standing Committee held several meetings to review the bill.
Secretary for Security Wong Sio Chak attended yesterday’s plenary session when the bill was voted on article-by-article in its second and final reading.
The bill passed yesterday will amend the current law regulating the statutory functions and powers of the Unitary Police Service.
The current Financial Intelligence Office was established in 2006 merely as a “project team”.
Initially, the office was part of the portfolio of the Secretariat for Economy and Finance, before it was moved to the Secretariat for Security portfolio in October 2018.
The office is tasked with collecting and assessing information on suspected money laundering and terrorist financing, and passing its findings to the Public Prosecutions Office (MP) for possible follow-up action.
According to the amended SPU law, which will take effect on February 1 next year, the Unitary Police Service will be additionally tasked with the prevention of, and fight against, money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction.
The two police forces of the Macau Special Administrative Region (MSAR) –the Public Security Police (PSP) and the Judiciary Police (PJ), operate under the command and leadership of the Unitary Police Service.
Secretary for Economy and Finance Lei Wai Nong addresses yesterday’s plenary session in the Legislative Assembly’s (AL) hemicycle. – Photo: GCS
