Prevailing pessimism dilutes impact of basket of goodies
The figure - HK$16.8 billion - is unmistakably eye-catching, the fourth such package of relief measures in the past 15 months. With that, the government will have spent HK$87.6 billion on economic relief, the equivalent of 5.2 per cent of the city's gross domestic product.
But if ordinary people remain unimpressed with the plethora of measures, it is because the impact of budget giveaways has become increasingly marginal.
It is apparent that one-off spending aimed at bringing about fresh impetus and sustained growth over the long term is limited.
Many, if not all, of the measures announced by the financial chief yesterday had already been widely leaked to the media, and so there were no pleasant surprises.
The depth of anxiety among the middle class about the loss of jobs and dwindling income will not be significantly eased with the rates waiver and tax rebate. Low-income earners and the underprivileged will find the basket of goodies will not go far enough to improve their livelihood.
The Liberal Party has described the measures as a round of 'timely showers' in a season of drought. Some will instead see the measures as no more than a drizzle; others are doubtful whether there will be a rainbow in the sky when the rain finally does stop.
With no clear sign that the economic downturn is nearing a turnaround, any modest positive impact of the relief measures will be diluted by the prevailing pessimism.
But instead of sitting idly by waiting for change, the Tsang administration is deeply aware of the risk of a downward spiral of public confidence about their ability to pull Hong Kong out of the economic crisis and lead in such extraordinary times.
At the same time, the administration is also anxious about Hongkongers' mood ahead as the June 4 and July 1 anniversaries move closer.
Given that the relief measures were largely expected and the politics involved with handouts is obvious, the impact of the package in bolstering the government's popularity is in doubt.
Worse still, the additional measures may breed more cynicism that the government suffers from a drought of ideas - that it can only dig into the reserves, one round after another, in the hope of alleviating the frustration of the people.
Despite the HK$16.8 billion figure, when yet another one-off cash giveaway fails to convince people the government is capable of fixing the economy, then the modest impact of the money will be like rain lost in the sea.
