New financial chief promises budget surplus will benefit all Hongkongers

The new financial secretary has promised to make the best use of the expected huge budget surplus to enable all Hongkongers to enjoy “genuine benefits” while ensuring public finances are sustainable.

Paul Chan Mo-po, who was appointed to the post last month after John Tsang Chun-wah resigned to run for chief executive, also pledged to formulate forward-looking fiscal policies to tackle the increasing burden the city’s ageing population posed on government finances.

Chan will deliver his maiden budget on February 22, the last under the Leung Chun-ying administration.

Political observers and economists have predicted the government will dish out more sweeteners in the wake of the huge surplus.

Tsang had forecast a surplus of about HK$11 billion when he delivered his budget last year. But for the nine months of this fiscal year, the cumulative surplus had already reached HK$65.4 billion. The fiscal reserves stood at HK$908.3 billion at the end of December.

Major accounting firms and groups have forecast a 2016-17 budget surplus of between HK$70 billion and HK$85 billion.