Financial Secretary John Tsang Chun-wah is expected to use his next budget speech to announce measures to make Hong Kong more competitive, and fiscal stimulus measures to help the city ride out the global economic downturn.
But there will be no repeat of the big handouts to households that were a feature of his budgets this year and in 2008, although the government is not ruling out some modest relief measures. In a speech two weeks ago, the financial secretary said the government did not see offering sweeteners as a solution to Hong Kong's economic problems.
Tsang will begin consultations on next year's budget today with a briefing to lawmakers on the latest economic situation. He will hold the first of several meetings with political parties and unionists tomorrow.
The government has doled out HK$87.6 billion since February last year. Tsang's maiden budget included measures worth HK$44.11 billion, which the financial secretary characterised as returning wealth to the people. In July last year, the government announced measures worth HK$11 billion to address inflation.
Last year's budget, delivered in the wake of the global financial crisis, included measures worth HK$10 billion targeting jobs, competitiveness and economic development, though Tsang did not describe them as stimulus measures. They included salaries tax rebates of up to HK$6,000 per taxpayer and a waiver of property rates.
In May, the government announced further relief measures, largely extensions or reruns of those in one or more of the three previous packages, which Tsang characterised as the fourth phase of a stimulus package.
A person familiar with the government's position said continuing such big handouts would create a dependence on the government that would not be conducive to sustained economic growth. 'We hope to set out the principles regarding fiscal prudence in the next budget,' the person said. 'What is more important is how to revitalise our economy.'