Who are the biggest winners and losers of the Hong Kong budget?
- Finance chief Paul Chan scrapped consumption vouchers, as well as electricity bill and university entrance exam subsidies
- Chan also prioritised spending on tech-based and green initiatives to steer new sources of growth and diversify from traditional sectors
Under the theme of “Advance with Confidence. Seize Opportunities. Strive for High-quality Development”, the new budget scrapped consumption vouchers, and electricity bill and university entrance exam subsidies, while capping the salaries tax reduction to HK$3,000 (US$383), half the amount from last year.
With the city expected to register a HK$101.6 billion deficit at the end of March, Chan prioritised spending on technology-based and green initiatives to steer new sources of growth and diversify from traditional sectors such as trade and financial services, as well as land and property.
So who wins in the latest budget and who loses out?
Chan took a radical step of axing all property curbs immediately, making flats within reach of more people and easing restrictions on loan ceilings. Chan also made a push to boost land and housing supply.
“[Chan] makes bricks without straw. The direction is healthy and positive. The tone is not rosy, but is a solid step to face challenges,” said Patrick Yeung Wai-tim, CEO of the Hong Kong General Chamber of Commerce.
The axing of property cooling measures will allow city residents, including non-permanent ones, to buy homes without paying extra stamp duties.