Healthy finances set solid foundation for Macao’s future development

Supported by healthy public finances, the Chief Executive, Mr Chui Sai On, today presented a budget for 2015 that would continue with the policy of helping to ease inflation and to share the results of economic development with every citizen of Macao. Mr Chui also told the Legislative Assembly that the Policy Address for the fiscal year 2015 will be submitted to them by the new term Government in the first quarter of next year. To ensure stability and stable development of the SAR, maintain normal operations of all public departments, and conform with requirements of law, the Government will formulate its budget for the fiscal year 2015 that includes the administrative expenses to maintain normal operations of all public departments, the expenses to be paid in the coming fiscal year as promised by the Government, and the funding for public work projects to be allocated by the first quarter of 2015. Meanwhile, the Government would continue the tax waivers that were introduced 2014. Mr Chui said the Government will continue to offer 30 per cent reduction in personal income tax for all employed residents with the basic allowance set at 144,000 patacas, continue to provide waivers of all business taxes, hawker licence fees, wet market stall rents, inspection and quarantine fees for live food, and stamp duty on life insurance, non-life insurance and bank service charges. Businesses will continue to enjoy waivers of signboard taxes (excluding tobacco advertisements) and exemption from tourism tax for restaurants. Macao residents will continue to enjoy the waiver of real estate tax for the first 3,500 patacas. Profit tax allowance for businesses will be increased from 200,000 patacas to 300,000 patacas, while waivers of stamp duty on entrance passes and tickets for cultural and arts performances, exhibitions and entertainment programmes will continue. Macao permanent residents buying residential properties for the first time will continue to enjoy waiver of real estate stamp duty. The Government will continue with the 60 per cent rebate of the personal income tax paid by each Macao resident for 2014, subject to a ceiling of 12,000 patacas. All residents will receive their tax refund for 2013 and 2014 during 2015 and 2016 respectively. The implementation of the aforementioned tax cuts, waivers and rebates is expected to reduce Government tax revenues by 2.135 billion patacas.
Meanwhile, the Government will continue to provide fare concessions to public transport passengers, electricity bill subsidy for residential units, and financial assistance for disadvantaged families, the disabled and low-income full-time workers. The Positive Life Programme and the Community Employment Assistance Scheme will continue to be implemented. Temporary housing subsidies will continue to be provided to eligible families on the waiting list for public housing. Eligible students and families will continue to receive educational subsidy and allowances for the 2014-2015 academic year. The Government will continue implementing the healthcare voucher scheme for the elderly and the second phase of the Continuing Education Programme. After consulting the Civil Service Pay Council, the Government proposed to adjust upward each point on the civil service salary scale to 79 patacas starting next January, and will submit the bill to the Legislative Assembly for deliberation. To ensure sustainable operation of the Social Security Fund, the Government will inject an extra 13.5 billion patacas into the Fund in 2015 as planned. Moreover, it will inject 10,000 patacas into the Provident Fund individual account of every eligible resident of the MSAR as start up infusion. The Government will continue to propose that an extra sum of 7,000 patacas from the fiscal surplus be injected into the Provident Fund individual account of every eligible resident in the coming year. Mr Chui also proposed to continue implementing the Wealth Partaking Scheme in the coming year under which each permanent resident will receive 9,000 patacas, and each non-permanent resident 5,400 patacas. The Government also proposed to offer the old age allowance of 7,000 patacas to each eligible senior citizen. The above subsidies, allowances and wealth sharing will cost the Government 11.419 billion patacas. The Secretary for Economy and Finance will submit the budget for fiscal year 2015 to the Legislative Assembly on behalf of the Government. Mr Chui said the overall economic development of the MSAR has maintained steady progress under joint efforts. As of September this year, the foreign reserves of the MSAR amounted to 129.2 billion patacas, while the basic reserve was 116.5 billion patacas, with excess reserves of 128.1 billion patacas. Upon the completion of the account closing procedures, the total excess reserves is expected to reach 224.4 billion patacas, thus establishing a strong financial basis for the Government to pursue future development and betterment of people's quality of living.