Rosier Treasury outlook fuels calls for financial help
Political parties have urged the government to announce measures in next month's budget to help the public and businesses, in view of a more positive financial outlook for the Treasury.
Sources indicated that rather than the HK$7.5 billion deficit previously estimated, the government was set to register a HK$30 billion surplus by the end of the financial year.
In a protest at the Central Government Offices yesterday, the Confederation of Trade Unions proposed that the government introduce a payout in which each taxpayer would be given a HK$5,000 cheque regardless of the amount of tax they had paid in the past year.
Legislator Lee Cheuk-yan, the union's general secretary, said this would help workers weather the economic downturn.
'Despite the current difficulties, we have only seen the government helping big businesses and leaning towards the bosses. The people, despite bearing the heaviest burden, get nothing,' Mr Lee said.
The union also urged that a loan scheme be set up for people who had recently lost their jobs, and for increased spending on education and social welfare.
Despite repeated warnings by Chief Executive Donald Tsang Yam-kuen and Financial Secretary John Tsang Chun-wah in recent months that the government would face a rising deficit due to the downturn, government sources have indicated that the situation will be better than previously expected.
They say that when the latest financial figures for December are announced this week, the Treasury is expected to register a surplus of more than HK$30 billion after deducting the HK$9.3 billion deficit brought forward from November.
The sources said that although several large sums were due to be paid by the government in coming months, including an HK$18 billion endowment grant for research in higher education, HK$4 billion for Sichuan earthquake rebuilding and a HK$9 billion injection to the Mandatory Provident Fund, revenue would increase from collection of salaries tax.
This could amount to a HK$30 billion surplus by the end of the financial year, the sources said.
But they dampened hopes that the financial secretary would announce any significant sweeteners.
Democratic Party legislator Fred Li Wah-ming accused the government of bluffing over the financial figures.
His party called for a continuation of the subsidy on electricity bills and a general deferral of rates payments.
Miriam Lau Kin-yee, chairwoman of the Liberal Party, said the government should introduce a series of measures, including a sales voucher scheme, to help struggling small and medium-sized enterprises.
Power play
Sweeteners are being sought from the government to help Hongkongers manage during the tough economic climate
PricewaterhouseCoopers has warned Hong Kong might face three or more years of worsening budget deficits totalling (in HK dollars) about: $200b
