No need for another extra financial reserve injection this year – Secretary for Economy

Secretary for Economy and Finance Lei Wai Nong has indicated that after detailed analysis authorities concluded that MOP8.1 billion (US$1 billion) from the financial reserve was sufficient to support all government expenditure for the end of 2020 and that he was confident there will be no need for an extra injection.

Chief Executive Ho Iat Seng previously predicted that a second MOP20 billion extra financial reserve injection in the 2020 budget by the end of the year, however, the Executive Council has advanced with a budget amendment proposal that accounts for a MOP8.1 billion injection.

Speaking about the proposal yesterday (Friday) that after calculations authorities realised that the budget reinforcement was lower than initially forecast.

According to to the Secretary, the reinstatement of issuing individual tourist visas for the whole country on September 23, gambling revenues began to show the first signs of recovery while there was a reduction in public services, allowing the government to adequately adjust the balance of expenses and revenues, reaching the aforementioned value.

Most of the reduction in public service expenses were said to be related to daily expenses, namely, printing on paper and cutting the budget for construction works that have not yet been initiated.

He was also adamant that the government has no plans to reduce salaries, something he indicated was clearly attested in the 2021 financial budget.