Fiscal surplus halved in first quarter

The fiscal surplus as at the end of the first quarter plunged by 52.9 per cent year-on-year, as the government saw consecutive drops in its revenues whilst expenditure increased by nearly 70 per cent.
The latest central account released by the Financial Services Bureau (DSF) shows that the fiscal surplus during the first quarter of the year totalled only MOP16.5 billion compared to the MOP35.1 billion that the government posted during the same period last year.
However, the annual target of fiscal surplus set by the government is MOP51.9 billion. As such, if the fiscal surplus does not go lower than MOP16.5 billion in the following three quarters, the target can still be met and even exceeded.
Revenues down,expenditure up Meanwhile, the government’s revenues also posted a year-on-year decline to MOP28.3 billion during the first quarter, down 32.9 per cent compared to MOP42.1 billion one year ago.
The plunge in revenues was due to the biggest source of government income – gaming taxes – decreasing 32.2 per cent in the three months to MOP23.9 billion from MOP35.8 billion one year ago.
Other income, such as indirect taxes, despite only amounting to MOP805 million of total revenues, also dived 40.6 per cent year-on-year.
The slump in the city’s revenues also suggests that the revenues the government should generate in the remaining three quarters have to reach at least an accumulative MOP117 billion, or MOP39 billion per quarter, to reach the annual target of MOP141.1 billion.
Although revenues have dropped significantly, the government spent more in the first quarter.
According to DSF data, the government spent a total of MOP11.8 billion in the past three months, compared to the MOP7.05 billion of one year ago, surging 67 per cent.
Nevertheless, the money that the government has spent on investment had been cut by 56.4 per cent, amounting to only MOP25.6 million although it had allocated MOP58.8 million for the same purpose during the same period last year.
K.L.