Editorial | Proof of pudding in the eating for Paul Chan’s budget amid crisis
- Hong Kong’s financial secretary served up a spending blueprint featuring some relief measures, additional government income and hopes for growth, but whether it is enough for troubled city remains to be seen
Paul Chan Mo-po never promised any Michelin-star dishes when he dressed as a chef in a TV commercial asking for people’s culinary preferences as he prepared his budget. Apart from keeping the usual smorgasbord of tax rebates and concessions, albeit in smaller portions, the financial secretary still managed to dish out some appetising surprises amid severe constraints in his hot kitchen.
Even though the menu he unveiled on Wednesday is hardly a feast for those who have been hardest hit by Covid-19, it still provides much-needed sustenance.
Peppered with targeted measures such as spending vouchers and a personal loan scheme for the unemployed, the HK$100 billion (US$12.89 billion) deficit budget is a pragmatic and timely recipe to address the city’s current plight without losing sight of the need to rebuild. Thanks to Chan’s efforts in managing expectations, his two-hour speech may have even been welcomed by the many who did not expect much.
The unprecedented digital vouchers, coming in at HK$5,000 per head by instalments, appear to be less generous and flexible compared to last year’s HK$10,000 handouts.
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What Hong Kong’s 2021-22 budget means for residents of the city
While the latest move is expected to bring direct benefit to the economy, it also raises concerns over access and use. The details must be carefully thought through to minimise any red tape and restrictions.