Hong Kong's budget might still be in the red by 2006-07, the target set for balancing its books, Financial Secretary Antony Leung Kam-chung has admitted.
But he is confident any deficit achieved will be acceptable.
The government has predicted the deficit, estimated to top $67.9 billion this financial year, will gradually turn into a surplus of $8.1 billion by 2006-07 following a series of revenue and cost-cutting proposals announced in last month's budget.
But the $11.8 billion rescue package unveiled on Wednesday to ease the impact of the Sars outbreak has raised concerns these plans will be derailed.
Defending the package on radio, Mr Leung predicted the extra spending would lift the deficit this year and that the growth forecast would slip. But he remained confident of achieving balance in the medium term.
'Even if we have a deficit by then, it would be lower than 1 per cent of the GDP,'' he said, referring to the deficit that now accounts for more than 5 per cent.