Executive Councillor Tam Yiu-chung said yesterday there should not be a budget deficit for the first financial year under Chinese rule. Mr Tam said the administration should try to make its first budget balanced, although the Basic Law did not rule out the possibility of a deficit. 'According to the spirit of the Basic Law, you can have a deficit,' Mr Tam said. 'But the question is, do we need to have a deficit in the first budget being drafted after the establishment of the SAR?' He stressed the best way was to have a balanced budget while giving assistance to the needy.