Macau Budget Surplus Reaches MOP21.27 Billion in 2025
Macau’s public finances closed 2025 with a substantial surplus, as revenue growth outpaced the increase in government spending. The final accounts show that the city generated MOP124.12 billion in general consolidated revenue and recorded expenditure of MOP102.85 billion, leaving a Macau budget surplus of MOP21.27 billion.
The figures, reviewed by the Legislative Assembly’s Second Standing Committee on November 9, indicate that revenue rose 6.9% year on year, while expenditure increased 5%. The result was stronger than the government’s revised budget expectations, although the composition of income continues to expose the administration to movements in the gaming sector.
Macau budget surplus highlights gaming revenue dependence
Concession-related revenue accounted for 76.6% of total general consolidated revenue in 2025, making it by far the largest source of public income. The category is closely tied to gaming taxes paid by casino concessionaires, underlining how strongly Macau’s fiscal position remains connected to the performance of its casino industry.
Actual recurring revenue reached MOP117.36 billion, an increase of 4.4% compared with 2024. The overall revenue increase was also supported by higher capital income. However, the concentration of receipts in concession payments means that a sustained downturn in gaming activity could place pressure on the government’s ability to maintain its current spending commitments.
The committee said the government had lowered its 2025 gaming revenue forecast from MOP240 billion to MOP228.8 billion during a budget revision. Actual collections nevertheless exceeded MOP240 billion. That outcome helped underpin the positive fiscal result and suggests that gaming-related receipts performed better than the revised assumptions used for budget planning.
The surplus was made up of MOP19.89 billion under the central budget and MOP1.38 billion from autonomous departments and institutions. These components together produced the MOP21.27 billion overall balance reported for the year.
Visitor growth fails to lift tourism tax receipts
The budget review also drew attention to a mismatch between Macau’s tourism performance and the amount collected through tourism-related taxes.
The city welcomed approximately 40.06 million visitor arrivals in 2025, an increase of 14.7% from the previous year and a record annual total. Visitor spending also rose 6.3%. Despite those gains, tourism tax revenue declined by MOP22.88 million to MOP1.09 billion.
The figures prompted committee members to seek an explanation from government officials. Chairman Ip Sio Kai indicated that the committee wanted to understand why tax receipts had fallen while arrivals and visitor expenditure were increasing. Possible exemptions and the way taxable activity is recorded are among the issues that may require clarification, but no definitive explanation was established during the initial review.
The discrepancy matters because Macau has been seeking to broaden the economic contribution of tourism beyond casino gaming. Higher visitor numbers and stronger non-gaming spending do not automatically translate into higher public revenue if the activities generating that spending are not subject to the same tax arrangements or produce limited taxable returns.
A clearer breakdown of tourism-related receipts could help policymakers assess whether the current tax framework captures the expanding range of visitor activities. It could also show whether the decline reflects temporary factors or a more persistent gap between tourism growth and government revenue.
Spending rises as public investment continues
Government expenditure reached MOP102.85 billion in 2025, up 5% year on year. Spending increases reflected both recurring obligations and capital investment, while transfers and subsidies remained an important part of the budget.
The government continued to fund livelihood programmes, including cash-sharing measures, pension-related contributions and social support. The committee’s review also examined operating costs and investment spending, including projects carried forward when payments could not be completed within the financial year.
Actual expenditure under the investment plan was reported at MOP17.84 billion, equivalent to an execution rate of approximately 90.1%. Major projects included the Light Rapid Transit East Line, public housing in New Urban Zone A, court facilities and the Islands medical complex. The execution rate indicates that most planned investment expenditure was carried out, although some approved project payments remained outstanding at year-end.
These commitments illustrate why a large annual surplus should not be interpreted simply as money available for new spending. The government must also account for long-term infrastructure requirements, social obligations and future transfers to public funds. The timing of project payments can affect annual budget balances without necessarily indicating a corresponding change in the underlying cost of those projects.
Fiscal resilience depends on a broader revenue base
Macau’s 2025 accounts show that the administration collected more than it spent, supported by stronger-than-forecast gaming-related revenue and an increase in overall income. Yet the 76.6% contribution from concession revenue remains a central structural feature of the public finances.
That dependence creates exposure to changes in casino demand, visitor composition and regional competition. If gaming-related receipts weaken, other revenue streams may not be large enough to offset the shortfall immediately. The recent decline in tourism tax collections, despite record visitor arrivals and higher spending, also raises questions about how effectively the government captures value from non-gaming tourism.
The budget review therefore presents two distinct policy challenges. The first is to preserve fiscal discipline while meeting existing social and infrastructure commitments. The second is to develop a more diversified revenue base, so public finances are less sensitive to fluctuations in one dominant industry.
For now, the MOP21.27 billion surplus provides a strong annual result. Its longer-term significance will depend on whether Macau can sustain revenue growth while broadening the sources that finance public services and investment. The tourism tax discrepancy and the concentration of concession income are likely to remain important issues as lawmakers examine the government’s fiscal performance.
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Sources
Macau Daily Times
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