HK's concrete solution to an embarrassment of riches
Two years ago, the financial secretary forecast a budget deficit of HK$40 billion and ended up with a surplus of HK$26 billion. Last year, John Tsang Chun-wah led us to believe that we could expect a budget deficit of HK$25 billion, only for it to blow out to HK$71 billion. Fortunately for him, his position does not appear to be based on his ability to make a reasonable budget forecast.
Earlier last decade, there was much hand-wringing in government circles over the recurrence of budget deficits, leading to the formation of a committee to investigate this problem. The committee of wise men concluded that yes, Hong Kong did indeed have a structural deficit problem. This wisdom was almost immediately undermined with the appearance of budget surpluses that financial secretaries have proved increasingly unable to forecast.
So should we therefore form a committee to study the problem of Hong Kong's budget surpluses? Or should we just concede that the government has a structural inability to present a budget that has some bearing on reality and that the process is simply out of control?
It has now become a cynical exercise in concealing what has become an increasing embarrassment of riches which the government attempts to convert, as much as possible, into concrete while doing relatively little to help the needy.
Bankers' awards dinner shock