Advertisement

Hong Kong budget: deficit, stamp duty and national security law spending among key takeaways from finance minister’s speech

  • Financial Secretary Paul Chan warns that city can expect deficit for next few years over recurring expenses linked to Covid-19
  • Stamp duty to rise on stock trading; Hong Kong to reposition its economy to allow for China factor

Reading Time:4 minutes
Why you can trust SCMP
3
Pamphlets containing information about this year’s budget were handed out to the public in Hong Kong on Wednesday. Photo: May Tse

Announcing a record deficit of HK$257.6 billion this year, Financial Secretary Paul Chan Mo-po told Hongkongers on Wednesday that a raft of countercyclical measures costing HK$120 billion were necessary to stabilise the economy and relieve people’s burden.

He also identified future areas of economic growth shaped by the coronavirus pandemic and changing geopolitical landscape in the region. Here are the six key takeaways from his budget.

1. Deficit every year

Chan warned that Hong Kong would suffer an annual deficit in the next few years because of rising recurring expenses and one-off anti-epidemic measures.

Financial Secretary Paul Chan said the deficit would hit HK$101.6 billion next year. Photo: Sam Tsang
Financial Secretary Paul Chan said the deficit would hit HK$101.6 billion next year. Photo: Sam Tsang

For the next financial year, the deficit would hit HK$101.6 billion, accounting for 3.6 per cent of gross domestic product.

“In other words, Hong Kong will record a deficit for a number of years after achieving a surplus for 15 years,” Chan said.

Advertisement