Chief Executive of the Macao Special Administrative Region Ho Iat-seng on Monday made his first policy address since taking office in December, pledging to utilize the fiscal reserve to maintain economic stability and people's livelihoods as he forecast the region's first budget deficit since its return to the motherland in 1999.

Addressing the Legislative Assembly, Ho also stressed that the SAR will safeguard the "one country, two systems" principle, utilizing the central government's favoring policies to drive the city's recovery from the epidemic and ensure stable development.

With a decline in financial revenue caused by the fallout from the pandemic, the SAR government will have a budget deficit in the 2020 fiscal year, the first time since 1999, Ho said.

Macao has a total fiscal reserve of over 627 billion patacas ($79 billion), Ho said. The government will implement a proactive fiscal policy, by increasing expenditure and cutting taxes and fees, to ensure economic stability, Ho said.

Expenditure will be increased in public investment on transport, public housing and government facilities to stimulate employment, Ho added.

Measures will also be implemented to maintain employment and relieve residents' financial burden, he said.

To stimulate the tourism and gaming sectors, which are Macao's pillar industries, the SAR will ask the central government to extend the individual travel visa scheme to more mainland cities.

It will also talk with the Guangdong provincial government, to further relax visa restrictions for Guangdong residents visiting Macao.

As of Monday, Macao had a total of 45 cases of coronavirus infection. It has not reported new cases for 12 consecutive days. To contain the virus, the government shut down all casinos for 15 days in late February.

Ho stressed that the government will continue its efforts to diversify Macao's economic structure, such as the development of innovation and technology.

It will also strengthen cooperation with neighboring cities under the Guangdong-Hong Kong-Macao Greater Bay Area outline, especially with Zhuhai in the Hengqin free trade zone.

Ho also pledged reform of the city's governing system, improving the structure of the government, to ensure a more effective administrative team.

Gu Mengyan contributed to this story.