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  • Jul 12, 2014
  • Updated: 3:02pm

Hong Kong Budget 2013

Financial Secretary John Tsang Chun-wah delivered his sixth budget speech on February 27, 2013, in which he unveiled HK$33 billion worth of relief measures and forecasted a surplus of about HK$64.9 billion for the 2012-13 financial year. Economic growth was expected to come in 1.5 to 3.5 per cent in 2013.

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POLITICS

Financial Secretary John Tsang defends his budget amid criticism

Financial Secretary argues government must be prudent andavoid extravagance, and hits back at critics who say fiscal plan lacks new ideas

PUBLISHED : Sunday, 03 March, 2013, 12:00am
UPDATED : Sunday, 03 March, 2013, 5:14am

Financial Secretary John Tsang Chun-wah yesterday hit back at critics who said his budget last week was too conservative, warning that the next generation would suffer if he "spent extravagantly for the sake of applause".

He emphasised the 16 per cent increase in government spending over the next financial year, saying it was rare for a government anywhere to be lifting expenditure.

Tsang told the RTHK programme Hong Kong Letter that maintaining financial prudence was the first responsibility of the financial secretary.

"I must make sure taxpayers' money is used in the right way," he said. "If I spend the surplus extravagantly for the sake of applause, not only will our generation suffer - the next generation will have to suffer."

Wednesday's budget received a mixed reception. A university poll found that its approval and disapproval rating were both about 30 per cent. Tsang insisted he was "not disappointed" by criticism that the financial plan lacked "new ideas".

"New ideas are not my primary concern. It does not matter if our measures are old if they are able to help the needy and move the city forward," he said on another programme, Saturday Forum, on Commercial Radio.

While the budget included HK$33 billion in one-off relief measures, Tsang said the "main dish" was the roughly 16 per cent increase in government expenditure, which comprised an 11 per cent increase in recurring expenses. "It is a substantial increase in outlays. For social welfare alone, it is a 33 per cent rise," he said. "I believe the public will sense an improvement in public services."

Meanwhile, Secretary for Education Eddie Ng Hak-kim said he hoped that 15 years of free education would be implemented within his five-year term, and that new scholarships unveiled in the budget were a measure to support the policy. In his budget, Tsang said HK$48 million would go on scholarships. Every year, the government will pay the overseas-study costs of 20 students who have chosen to work as teachers.

"We need quality teachers in early childhood education if we are to implement free education," said Ng.

Students studying English or early childhood education will receive priority in the scholarships' allocation, but some will go to those studying mathematics and liberal studies, he said.

 

"Budget sweeteners no real relief to the working poor", Video by Hedy Bok

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maecheung
"New ideas are not my primary concern. It does not matter if our measures are old if they are able to help the needy and move the city forward," ....If his ideas were able to help the needy, why is the wealth gap getting widened? Why is there more and more working poor in HK. This just prove his ideas are not working and he is too stubborn to admit it. He either has new ideas, or he is just going through the motion of giving money away. People who live in government housing do not need the two months rent free, and are not as desperate and needy as the ones who live in caged or sub divided flats.
ianson
Why did Tsang persist in the idea of handing cash to Li Ka-shing and CLP at the expense of our battered environment, by repeating this obvious electricity subsidy madness? Paying electricity bills is a challenge for many and there's no question that families need help but there are other methods available for improving their lives, like radically upgrading medical services, for example. I don't suppose his "middle"-class membership card entitles him to join his fellow citizens to wait 12 hours to see a doctor in one of his government's accident & emergency departments.
XYZ
If this article is an accurate account of Mr. Tsang's views, then the man is an idiot. He should not be proud of a 16% increase in government expenditure, he should be ashamed of it, especially as it is on top of the HKSAR's existing gold-plated infrastructure spending and civil service payroll. Lowering, or even eliminating, salaries tax would be a bolder and fairer pro-growth strategy.
mercedes2233
Once the salaries tax is lowered or eliminated, it would be near-impossible to re-instate them.
XYZ
Yes, that is one of the attractive features of doing so.
maecheung
Very True! Don't have to eliminate the salaries tax at all, just raise the exemption, along with a larger rebate will do.
 
 
 
 
 

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