So, how well did John Tsang listen?
Regina Ip says while John Tsang rightly heeded the cries for help in business, in other areas of the budget he should have closed his ears to bureaucratic naysayers and lobbyists
For some, "déjà vu" or "underwhelmed" does not begin to describe the unbearable ennui after listening to the financial secretary's budget speech last Wednesday. The budget contains the same gross underestimation of the fiscal surplus; the same old package of handouts to alleviate poverty; and the same old method of using off-current account seed funds to address social ills. Is it really so hard to find a silver lining or two in John Tsang Chun-wah's playbook?
Tsang cannot be faulted for trying hard to plough back no less than HK$33 billion of the anticipated fiscal surplus of over HK$64 billion to those identified by the government as being most in need. Such "freebies" as rates and salaries tax rebates, and double payment of social security allowances, have become standard items of his relief packages for the middle class and the underprivileged.
But hidden in the speech is also a quiet but firm re-affirmation of his economic and fiscal principles - the need to maintain a low and simple taxation system; adhere rigorously to the policy of living within our means; and raise our productivity through investment in education and training, to boost our economy.
The question is: is Tsang's adherence to old principles sufficient to meet the economic and social challenges facing Hong Kong today?
While some complain that Tsang has not dished out sufficient "sweeteners" to help the middle or lower classes, the greatest failure of his budget is arguably his inability to map out a strategic vision for Hong Kong's long-term economic development. Even though he focused on the economy right from the start, and spelt out specific measures to strengthen our "pillar industries" and nurture "emerging industries", there was no mention of the six priority industries identified by former chief executive Donald Tsang Yam-kuen in 2009.
Presumably they have been quietly dropped, but John Tsang owes us an explanation why. He should also tell us his criteria for selecting the industries that would match the comparative and competitive advantages of Hong Kong.
To his credit, Tsang did respond, albeit belatedly, to some long-standing cries for support. His pledge to reserve land in New Territories West to develop our high-end logistics and trading industries is a move in the right direction. In doing so, Tsang has no doubt taken the advice of our Customs & Excise Department, which has a keen understanding of Hong Kong's strength in meeting the tight transport schedules of time-critical parts and components.