Letters | Hong Kong budget sweetener: smaller but still soothing

Many are dismayed that this year’s handout will only be half the amount given out in 2020
But e-vouchers may be more effective at boosting the economy and trimming deficit

Hong Kong economy

Letters

Published: 6:45am, 1 Mar 2021

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Hong Kong’s economy has been hit hard by the Covid-19 pandemic. In last year’s budget, all permanent residents were handed an unprecedented HK$10,000 as disaster relief. While it was no cure, many saw that as a soothing sweetener at a catastrophic time.

Amid the ebb and flow of the pandemic, many have lost their jobs and businesses are suffering, especially shops and restaurants. Many would expect the monetary god to have once again come to their rescue with at least HK$10,000 handed to them like last year. However, the relief this time has shrunk to HK$5,000, and is no longer in cash but consumption vouchers.

That has attracted quite a bit of criticism. Much of the flak has been directed at Financial Secretary Paul Chan Mo-po, who naturally did not seem to be happy at all when he appeared in public.

It is understandable that people are dismayed when their hopes are dashed. But, on second thought, we should not pin the blame for the shrinkage of the pandemic relief on Mr Chan.

As he has explained, and reasonably so, the government coffers will be less than healthy in the coming years, with less income from land sales as well as tax revenue, whether from individuals or businesses. We may face a more serious financial deficit unless welfare expenditure is reined in. The sweetener may be less sweet than before, but it can still have a soothing impact.

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What Hong Kong’s 2021-22 budget means for residents of the city

The effect of handing out the relief measure as e-vouchers would be that people would have to spend the money rather than saving it up like many did last time with the bigger handout.

The new measure would benefit the economy and people in general, soothing their distress in the short term. Therefore, I hope both the Legislative Council and Hongkongers at large will come out in support of the new financial plan.

Randy Lee, Ma On Shan

Cash handouts are easy to share around

The government should give residents the choice to share their HK$5,000 budget giveaway with their favourite local charity. There should be an online transfer option for those of us who would rather donate the amount.

All the millionaires in this city can do a lot by donating the giveaway and allowing charities to spend it on their service needs, as many of us did with last year’s handout. This would boost the welfare of all as more people in the city struggle with job and income loss.

Rishi Teckchandani, Mid-Levels

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