Report on budget implementation: Gov’t revenue and expenditure increased on 2012

2013-10-31

From：Macau Daily Times

The Secretary for Economy and Finance, Francis Tam, presented the latest report on budget implementation yesterday, referring to 2012. In the Legislative Assembly plenary meeting, he revealed that revenue and expenditure results have continuously registered a surplus, which reached over MOP90 billion last year.
The government of Macau has amassed a total of MOP144,9b in ordinary income, representing an increase of 17.9 percent compared to the previous year.
Francis Tam believes that the increase is due mainly to direct taxes on the gaming industry. The “Special Tax on Gaming” related to games of chance seems to be the most “profitable” one, with the government amassing a total of MOP104.8 billion, representing an increase of MOP12.7 billion.
The government’s ordinary expenditure also rose by 18.5 percent in 2012. MOP54 billion was spent, with an execution rate of 65.9 percent. Furthermore, the government has had running costs of MOP40 billion, whereas the expenditure with the Public Investment Plan (PIDDA) execution rate reached 70.3 percent.
The Secretary also provided further information on the functional areas in which the government spent money. Education seems to be one of the privileged areas, with MOP11,5b spent during 2012.
The report also reveals a 56 percent increase of the effective expenditure with PIDDA. Again, education seems to top the list, with MOP5.5 billion applied. The transfer of the University of Macau to Hengqin Island is believed to be one of the main reasons for the increase. MOP3.9 billion was given to the Economic Services, with the new ferry terminal in Taipa playing a significant role in expenditure.
Within PIDDA, the government has also spent MOP3.4 billion on housing, with the Secretary emphasizing social housing projects such as the one built in Seac Pai Van.
The financial scenario of Macau’s government might look good, but lawmakers still questioned Francis Tam on a wide range of issues. Ng Kuok Cheong, for instance, stated: “I would like to congratulate the Secretary for this surplus, but for next year, could you elaborate on the capitalization of our financial reserve? Moreover, could the government reveal how it will distribute the money? Extra reserves, for instance, could be applied for funding houses or support social matters.”
The lawmaker also wanted to know how the government had obtained their results. “Are these a result of policies? Because it seems that the government does not have any policies on how to spend money.”
Ng Kuok Cheong took the opportunity to advocate for the introduction of a Structural Law of Budget Implementation, as already defended this month by his association New Macau.
Lawmaker Chui Sai Cheong also addressed the need to set up a budget law, stating that “we need to reinforce the collaboration between the judicial and political powers to avoid further delays.”
Francis Tam clarified that the Monetary Authority of Macau manages the surplus and that, depending on its possibilities, “the money is applied to investments.”
“From a legal perspective, after the approval of the report, the money will then be incorporated and invested,” he added.

Copyright@Macau Daily Times