Macau, China, June 3, 2025 (Lusa) - The Macau Government announced on Tuesday a €310 million increase in spending in the semi-autonomous region’s budget to strengthen social support.
Executive Council spokesman André Cheong Weng Chon said the 2.5% rise in spending to 116.2 billion patacas (€12.6 billion) was partly due to “subsidies granted to vulnerable groups”.
André Cheong was speaking at a press conference at which the creation of a subsidy totalling almost €6,000 for children up to the age of three was also confirmed, in order to raise the territory's lowest birth rate in the world.
In mid-April, Macau’s Chief Executive Sam Hou Fai said that the new subsidy should benefit 15,000 children with permanent resident status in the territory by 2025.
From July 16, parents will be able to apply for the subsidy of 1,500 patacas (€165) per month until the child reaches the age of three, for a total of 54,000 patacas (€5,939).
The increase in expenditure is also due to the construction of the new campus of the University of Macau in neighbouring Hengqin (Mountain Island).
The current budget had already set aside 1.7 billion patacas (€184.4 million), the deputy director for Finance said at the press conference.
Daisy Ho In Mui also said that 340 million patacas (€36.9 million) are earmarked for investment in scientific and technological research and development, including the “acquisition of laboratory equipment”.
On the contrary, the revision provides for a cut of 4.56 billion patacas (€494.6 million) in revenue, to 116.5 billion patacas (€12.6 billion).
Daisy Ho said the reduction was due to the slowdown in the volume of bets in the casino sector and admitted that “in the second half of the year [gambling tax revenue] will be somewhat uncertain”.
The city’s six casino operators pay a direct tax of 35% on gambling revenues, with 2.4% going to the Macau Social Security Fund and urban and tourism development, and 1.6% to the Macau Foundation for cultural, educational, scientific, academic and philanthropic purposes.
The previous chief executive, Ho Iat Seng, had predicted casino revenues of 240 billion patacas (€26.4 billion) in 2025, or 20 billion (€2.2 billion) per month.
Daisy Ho said the government had decided to lower the target to 218 billion patacas (€23.7 billion), or 19 billion patacas (€2.06 million) per month, because “the situation is not as expected”.
In the first five months of this year, gambling revenues rose only 1.7% to 97.7 billion patacas (€10.7 billion).
“We analysed the global economic situation and a different consumption pattern among tourists in Macau,” Daisy Ho added.
Average spending per visitor in the Chinese region of Macau, excluding casinos, fell 13.2% in the first quarter of the year compared to the same period in 2024, according to official data.
On April 15, Sam Hou Fai announced that he would review Macau’s budget to strengthen social support, despite admitting fears of a deficit in 2025 due to the slowdown in gaming revenues.
But the forecast released today points to a budget surplus of 286.9 million patacas (€31.3 million).
This is despite Macau ending April with a public account surplus of 10.3 billion patacas (€1.14 billion), 18.5% less than in the same period last year.
Macau closed 2024 with a surplus of 15.8 billion patacas (€1.87 billion), more than double that recorded in the previous year.
VQ/AYLS // AYLS
Lusa
