The budget surplus rose to HK$123.5 billion by the end of February, raising hopes the 2007-08 surplus might surpass the HK$115.6 billion forecast by the financial secretary four weeks ago.
But room for John Tsang Chun-wah to grant more tax relief in light of the rising surplus would be limited, according to a tax expert.
Figures released by the government yesterday showed that revenue continued to outstrip spending in the first 11 months of the financial year, pushing the surplus from HK$122.6 billion in January to HK$123.5 billion in February.
Fiscal reserves stood at HK$492.7 billion, up from HK$348 billion in February last year.
PricewaterhouseCoopers partner Tim Lui Tim-leung believed the year-end surplus would surpass the estimate of HK$115.6 billion in the budget.
'I think it's safe to say that we will end up with a surplus of over HK$120 billion,' he said, adding that the finance minister should not hand out more goodies as a result.
'We are talking a few billion more. I believe the room for further manoeuvring is limited. After all, the tax package given by the finance chief was already quite extensive and generous,' he said.