It will cost the Macau government 1.7 billion patacas.

Answering lawmakers' questions in Macau's Legislative Assembly, Chu said the cash would help counter high inflation.

He said with a budget surplus of 41.8 billion patacas, the government had a duty to help ease the pain of high inflation.

The move is also interpreted as an attempt to assuage public concern over the lack of a trickle-down affect as the city's booming casino continues to post massive profits.

The cash bonus scheme was launched by Chu's predecessor Edmund Ho Hau-wah in 2008, repeated in 2009 and, since Chu took office in December 2009, he has presided over three handouts. Chu also announced the introduction of a special stamp duty to rein in property speculation. Properties bought from today and sold within a year of purchase will incur a 20 per cent stamp duty. The new levy will be reduced to 10 per cent between one and two years after purchase.

Macau's Monetary Authority will also cap the mortgage on new purchases at 70 per cent. For non-permanent residents, mortgages are capped at 50 per cent.

Hong Kong finance chief Tsang announced a special stamp duty in November last year.

Hong Kong property sold within six months will incur a 15 per cent stamp duty. This is in addition to the current stamp duty of 4.25 per cent.

The new levy for property sold between six and 12 months is 10 per cent. Those sold after two years will incur a 5 per cent levy.

Macau University economist Davis Fong ka-chio said: 'This latest round of cash handouts is influenced by Hong Kong. The cash handout last time was only 4,000 patacas, and 6,000 patacas went into people's provident fund account.

'But in Hong Kong, the government is giving out cash. The people in Macau, like their counterparts in Hong Kong, also argue they want cash right away.'