Macau's public finances record losses before increased support

According to data published online by the Financial Services Department (DSF) on Friday, the territory recorded a surplus in public accounts of 11.4 billion patacas (1.2 billion euros) in the first half of the year.

However, this figure represents a 2.5% drop compared to the end of May, when Macau had a surplus of 11.7 billion patacas (1.27 billion euros).

Even so, the city's surplus between January and June was 40.3% higher than in the same period last year and is already higher than the Government's forecast for the whole of 2025: 6.83 billion patacas (751.5 million euros).

Macau closed 2024 with a surplus of 15.8 billion patacas (1.87 billion euros), more than double that recorded in the previous year.

Macau's public expenditure fell 8.2% in the first half of the year, compared to the same period in 2024, to 41.4 billion patacas (4.38 billion euros).

The only reason for the drop was spending on social support and subsidies, which fell by 17.7% to 20.7 billion patacas (2.19 billion euros).

But Macau's parliament on Wednesday approved a government proposal to increase budget expenditure by 2.86 billion patacas (310 million euros) to strengthen social support.

The review includes the creation of a subsidy, totaling 54,000 patacas (almost six thousand euros), for children up to 3 years old, to increase the lowest birth rate in the world.

Macau's current revenue also fell 0.95% in the first half of the year, to 52.3 billion patacas (5.54 billion euros).

The main reason for the decrease was a 62.3% drop, to 520 million patacas (55 million euros), in "property income", an item that includes revenue from land concessions.

On the contrary, revenues from taxes on gambling -- which represent 86.4% of the total -- rose 1%, to 45.3 billion patacas (4.79 billion euros).

The city's six gaming operators pay a direct tax of 35% on gaming revenues, with 2.4% going to the Macau Social Security Fund and urban and tourism development, and 1.6% going to the Macau Foundation for cultural, educational, scientific, academic and philanthropic purposes.

Total revenue from Macau's casinos reached 118.8 billion patacas (12.5 billion euros) in the first half of the year, 4.4% more than in the same period in 2024.

On April 15, the region's government leader, Sam Hou Fai, admitted fears of a budget deficit in 2025 due to the slowdown in gaming revenues.

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