Hong Kong finance chief revises budget deficit to HK$80.3 billion, down 8%

Hong Kong’s finance chief has revised the city’s deficit for the previous financial year to HK$80.3 billion (US$10.4 billion), 8 per cent lower than an earlier estimate, attributing the change to increased stamp duty income on stock trading and lower-than-expected departmental expenditure.

Financial Secretary Paul Chan Mo-po on Wednesday also said that the government would only decide on a proposed fee for private cars crossing the border after “careful consideration” amid criticism from lawmakers, as they gave the green light to his belt-tightening 2025-26 budget.

His latest budget blueprint, unveiled in February, contained a string of measures to tap new sources of revenue and ease a HK$87.2 billion deficit, starting with a pay freeze for all public servants, a downsizing of the civil service and a cut in education spending.

Addressing lawmakers before the budget vote, Chan said the deficit for the 2024-25 financial year had been revised to HK$80.3 billion, HK$6.9 billion less than the blueprint estimate.

“It was mainly due to the rise in stamp duty revenue on stock trading and the lower-than-expected departmental expenditure,” he explained.

The government said on Wednesday that expenditure and revenue amounted to HK$753.2 billion and HK$564.9 billion, respectively, for the year ended March 31, 2025.