The Macau government has revealed that its fiscal reserves stood at MOP$562.9 billion (US$69.7 billion) as of September this year, a decrease of more than MOP$80 billion (US$9.90 billion) or 12.5% compared to the MOP$643.2 billion (US$79.6 billion) it held at the end of 2021.
Reserves had peaked at MOP$663 billion (US$82.0 billion) in February 2021, meaning the government has dipped in to the tune of MOP$100 billion (US$12.4 billion) over the past 18 months, representing a decline of 15%.
Secretary for Economy and Finance, Lei Wai Nong, mentioned Macau’s fiscal reserves when announcing details around Implementation of the 2021 Budget at the Legislative Assembly on Thursday. As of September 2022, the basic reserves of the SAR’s fiscal reserves amounted to MOP$185.1 billion (US$22.9 billion) and the excess reserves amounted to MOP$377.8 billion (US$46.7 billion).
Macau’s gross gaming revenue fell to MOP$86.9 billion (US$10.7 billion) in 2021 and the government’s gaming tax revenue to MOP$33.9 billion (US$4.19 billion). Due to the decrease in revenue as a result of the COVID-19 pandemic, the government used MOP$37.6 billion (US$4.65 billion) in excess reserves to make up for the shortfall in revenue.
By comparison, in 2019, prior to the outbreak, Macau’s GGR was MOP$293.3 billion (US$36.3 billion) and the government’s gaming tax revenue was MOP$112.7 billion (US$13.9 billion) – three times the amount of tax revenue collected in 2021.
The government’s serious shortfall in gaming revenue looks set to worsen this year. Macau’s GGR from January to October 2022 was only MOP$35.7 billion (US$4.42 billion)with tax revenue of MOP$13.9 billion (US$1.72 billion) currently at just 39% of the budgeted amount.
Based on the monthly average for 2022, total GGR is currently tracking at MOP$42.9 billion (US$5.31 billion) in 2022 which would result in gaming taxes of MOP$16.7 billion (US$2.07 billion) – half the amount collected in 2021.
