Hong Kong leader backs proposal to dump ‘miserly’ fiscal philosophy
Carrie Lam hails Joseph Yam’s idea that deficit spending should be adopted if needed to spur economy; she also says Basic Law provision should not be viewed too rigidly
In what may turn out to be a major policy shift, Hong Kong’s leader has publicly backed an assertion by the city’s former central banker that the “miserly” fiscal philosophy of the past decade should be abandoned even if increased spending leads to budget deficits.
On a visit to Singapore, Lam also said the provision in the Basic Law, Hong Kong’s mini-constitution, on fiscal management should not be interpreted too rigidly.
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She was responding to a personal blog post by Yam, former Hong Kong Monetary Authority chief and now a member of her Executive Council.
Lam welcomed more public discussion on the issue, saying it would help her carry out her “new philosophy” on public finances.
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“My new fiscal philosophy aims to wisely use our accumulated surpluses for the community,” Lam wrote in her manifesto. She also highlighted the need to invest “more generously” for the future, and for “timely investments as preventive measures” so that Hong Kong could reduce the extra costs that might arise from delayed action.