Macao to impose austerity if gaming revenue falls below red line

The Macao Special Administrative Region (SAR) government will launch austerity measures if the gaming venues tally for July does not reach the "red line" of 18 billion patacas (2.25 billion U.S. dollars), Chief Executive Chui Sai On told reporters Tuesday on the sidelines of a meeting.

Given the figures for more than 20 days of the month, the gaming revenue this month is not likely to exceed 18 billion patacas, and a spending cut would be considered if necessary and the details of budget might be announced as early as next month, he said.

Chui promised that if austerity measures are introduced, they would affect only the spending of the government sectors. In other words, people's livelihood including social welfare and medical care would remain intact.

He reiterated that the financial situation of the SAR remains stable, and fiscal reserves are still invested under the principle of low-risk and safety first.

The SAR government has already established a relatively sound fiscal reserve system, he said, adding the current fiscal reserves can cope with the fluctuations in the economy.

Meanwhile, the SAR government will strictly abide by the provisions set by the Basic Law and follow the rule of "keeping expenditures within the limits of income as well as balance the budget" in hopes of running a fiscal surplus, Chui added.

Macao is undergoing adjustment after rapid progress over the past decade, Chui said, adding the SAR government will continue to focus on diversifying its economy, strengthening regional cooperation, and balancing the development of gaming and non- gaming elements. Endi