Henry Tang rejects claims that budget lacks long-term direction

Henry Tang Ying-yen yesterday rejected lawmakers' criticisms that his budget lacked long-term vision, as his finance blueprint received the fewest opposing votes in his four-year reign as the financial secretary.

The budget, which included the HK$20 billion tax handout unprecedented since the handover, was passed 50-2. Only unionist lawmaker Leung Yiu-chung and Albert Chan Wai-yip of the League of Social Democrats voted against it.

Calling lawmakers' criticism that the budget lacked long-term direction 'unfair', Mr Tang claimed each government policy and decision was based on people's welfare and long-term interests. 'Besides, we cannot just treat a single budget as the blueprint for Hong Kong's long-term development,' he said.

The chief executive's policy address and the report of the economic summit on Hong Kong's development and its relationship with the mainland's 11th Five-Year Programme had already mapped out how economic competitiveness could be strengthened, he said.

'The four budgets within my term have also proposed many measures that are conducive to Hong Kong's long-term development, with the aim of working for the city's prosperity and stability,' he said, citing examples such as the abolition of estate duty and promoting the Closer Economic Partnership Arrangement.

Mr Tang also defended the high level of fiscal reserves, saying that contrary to suggestions by some lawmakers, they could not be used as government expenditure lightly, but should be used for maintaining Hong Kong's fiscal stability.