[Updated to include the new budget was approved]
The Macao Foundation had some MOP39.7 billion (US$4.9 billion) in available equity by the end of last year, of which MOP10 billion or about 25 per cent will be used to support the implementation of economic support measures to alleviate the economic impact of COVID-19, Secretary for Economy and Finance Lei Wai Nong said today (Thursday).
The secretary went to the Legislative Assembly (AL) today to present more details over the new changes that will be implemented in the proposed 2020 budget to face the crisis, with the draft bill approved by legislators with no votes against.
The MOP10 billion will be used to support the expenses of six support schemes, previously detailed by the Macau government, with the secretary today specifying the estimated expenses for each plan.
The highest expenditure is estimated for a workers’ financial support plan that will provide taxpayers of Macau residents included in the 1st professional income tax bracket group to receive three months’ worth of MOP15,000, which is budgeted at MOP3.8 billion.
Some MOP3.1 billion will also be provided by the Macao Foundation for policies aimed at promoting local tourism and attracting visitors to the city, while MOP2.4 billion will be used for a company support plan that will distribute funds ranging between MOP15,000 and MOP200,000, depending on the number of workers employed by each company.
A government-subsidized training plan that will provide work retraining or improvement training courses and subsidies to local workers will have an estimated expenditure of some MOP316.5 million while a bank credit interest subsidy plan for self-employed professionals, which allows freelance professionals to request an interest subsidy for a period of 2 years up to an amount limit of MOP100,000, is estimated to require MOP109.6 million.
Meanwhile, MOP95.4 million will be provided in a plan of financial support for liberal professionals, a single MOP 15,000 subsidy, and a support scheme for residents who work as professional rental drivers or taxi drivers who rent vehicles to owners, who will be provided with a single MOP10,000 support.
Apart from the Macao Foundation expenses, some MOP3.6 billion will also be used to support the implementation of the new round of the new MOP5,000 consumption voucher scheme set to start in August.
All these changes led to the total revenue amount of the Macao SAR integrated budget for the economic year 2020 to be changed to an expected MOP115.4 billion, with predicted expenses changed to MOP114.6 billion.
During his 2020 policy address, Chief Executive Ho Iat Seng noted that more than 50 billion or about 12 per cent of the local GDP would be used in relief measures to ease the impacts of the pandemic.
These support measures are required for local authorities to request MOP39 billion from the local capital financial reserves to balance this year’s budget.
