In the first two months of 2024, Macau more than doubled its revenue from the previous year, fueled by a revival in gaming taxes, which led to a 49% increase in government spending.
The Finance Services of Macau noted the revenue for January and February hit 18.3 billion patacas ($2.08 billion).
This peak is unmatched since the COVID-19 pandemic began in 2020.
From this surge, the city’s government netted 14.8 billion patacas ($1.68 billion) in gaming taxes alone.
This figure emerged from the latest budget execution report unveiled last Friday.
By February’s end, 18% of Macau’s annual revenue forecast of 102 billion patacas ($11.7 billion) was already in the coffers.
This projection is part of the budget for this Chinese Special Administrative Region.
The University of Macau had predicted by December that government revenues might top 109.6 billion patacas ($12.3 billion). This forecast exceeds official estimates by 7.5%.
This revenue boost led to a 49% spike in public spending, totaling 10.6 billion patacas ($1.2 billion).
Notably, infrastructure investment skyrocketed sixfold to 3.3 billion patacas ($374.9 million).
Operational expenses also climbed by 4.9% to 7.29 billion patacas ($436.7 million).
This rise was fueled by enhanced social support and population subsidies, growing by 4.1%, and a 4.3% increase in public sector wages.
Looking ahead, Macau’s 2024 budget predicts a surplus, sidestepping the need for financial reserves after a three-year economic slump.
Since 2020, positive financial standings were crucial. This requirement, outlined in its Basic Law, was met through financial reserve funds, peaking at 10.5 billion patacas ($1.21 billion) in 2023.
Highest surplus in four years
The city’s financial surplus in January and February was 7.75 billion patacas ($601.1 million), a 49% rise from the same timeframe in 2023.
This surplus is the highest in four years.
The pandemic severely impacted Macau’s gambling industry from January 2020, a key economic driver.
Taxes from this sector largely fund the government’s budget.
Adjustments and stimulus efforts have since aimed at supporting businesses, the general populace, and boosting consumption.
Following China’s easing of ‘zero COVID’ measures in mid-December 2022, Macau gradually lifted most health restrictions.
This decision underscores the territory’s steps towards recovery and economic revitalization, highlighting the interconnectedness of health policy, economic strategy, and fiscal stability.
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