This paper examines public finance in Macao from the perspective of economic functions，with a focus on the Chief Executive’s policy addresses for the 2008 and 2009 financial years. The evidence and analysis reveal that the overpowering development of the tourism and gaming industry had hindered the government’s efforts to fulfil its economic functions，leading to a widening gap between the rich and the poor and laying the seeds for potential long term economic instability. Due to the subprime crisis in the US，the whole world was engulfed in a Financial Tsunami. Macao was unlikely not to feel its effects. The economic policies of the Macao government in recent years had been on easing short-term problems. Although the importance of economic restructuring had been frequently mentioned，the government had not introduced adequate direct and concrete measures. If the government were to improve its performance，more efforts would be needed.