Fiscal surplus reached MOP20.08 bln for H1

By
Cecilia U

The city’s fiscal surplus reached MOP20.08 billion (US$2.50 billion) in the first half of 2017, up 15.3 per cent when compared to the same period last year, according to data published by the Financial Services Bureau (DSF).
The amount of surplus in the first six months of the year represents over three times the targeted fiscal surplus for the whole year, at MOP5.57 billion.
The revenue, as shown in the central account, increased 14.2 per cent year-on-year to MOP54.83 billion during the period, with the execution level reaching 60.3 per cent of the MOP90.86 billion predicted for 2017.
Taxes from gaming, which constituted the majority of the revenue generated, were MOP45.23 billion, up 14.2 per cent year-on-year.
Indirect taxes – including property income, taxes for transfers and fees, fines and penalties – increased by 55.7 per cent year-on-year, amounting to MOP2.5 billion.
Meanwhile, capital revenue amounted to MOP166.4 million, a drop of 41.8 per cent year-on-year when compared to the MOP285.8 million generated during the same period last year.
Economist Albano Martins commented that the government is still being conservative in its spending, despite a 13.6 per cent year-on-year increase, to MOP34.8 billion.
Nonetheless, the economist expressed satisfaction at the increased PIDDA investment plan, which rocketed up 256.7 per cent year-on-year to MOP6.1 billion, compared to MOP1.7 billion during the same period last year, with an execution rate of 40.1 per cent.
“It was not normal in Macau last year to have the PIDDA with only a 12 per cent or 15 per cent [execution rate],” said Martins, while noting that the performance in PIDDA was much better in the past.
PIDDA investment involves investment in public infrastructure projects in the city such as public housing projects.
The Secretariat Office for Economy and Finance (GSEF) replied to Business Daily’s enquiry, stating that the increase in PIDDA was ‘mainly due to the positive progress in the construction of the artificial island for the Hong Kong-Zhuhai-Macau Bridge as well as the construction of Light Rail Transit’.