Macau Chief Executive Ho Iat Seng warned that if monthly gaming tax revenue falls below 15 billion Macau patacas, it could lead to a fiscal deficit, and emphasized the urgent need to reconsider Macau's tax structure.
In his policy address, He Hui pointed out that the current fiscal model is overly dependent on gaming-related income, with casino taxes expected to account for over 80% of Macau's fiscal revenue this year. Of the 115 billion Macau patacas in regular expenditures, 93.1 billion is expected to come from gaming taxes.
The total public sector wage bill is as high as 30 billion Macau patacas, along with rising social welfare costs, which are considered areas of increasing pressure. Mr. Seng warned that if gaming revenue drops to between 12 billion and 15 billion Macau patacas per month, the government will struggle to fulfill its statutory duties.
The Chief Executive reiterated his government's commitment to economic diversification. He mentioned cooperation with Hengqin to promote the development of healthcare and high-tech sectors, and proposed restoring legislation similar to the original "Offshore Fund Law" to attract international financial institutions.
When legislator José Maria Pereira Coutinho asked whether consumption vouchers would be issued again to stimulate demand, Mr. Sam said that such measures are suitable for different economic environments and need careful assessment.
He also stated that any review of the salaries of frontline civil servants must balance between public sector conditions and broader fiscal sustainability.
