Finance chief unveils HK$170 billion budget packed with sweeteners, pointing to need to lift Hong Kong after Covid crisis takes ‘drastic turn for the worse’
- Highlights include HK$10,000 handouts, tax deductions for tenants of residential properties and a rent moratorium for businesses that lease their space
- Relief package made possible by increased revenue from land sales and profits tax, with government expecting HK$18.8 billion surplus for financial year
While Financial Secretary Paul Chan Mo-po’s budget on Wednesday set aside HK$67.5 billion to fund anti-pandemic efforts, the eye-catching sweetener was a coming handout of digital vouchers worth HK$10,000 each to 6.6 million eligible Hongkongers to spur consumer spending.
Public expectations were especially high for livelihood relief as well as wider economic solutions in this budget, amid the worst public health crisis to hit the city, and Chan’s last spending blueprint before the current administration’s term ends this year required last-minute changes because of a worsening situation, according to sources.
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Hong Kong budget earmarks HK$170 billion in fight against Covid-19
“The new wave of epidemic has disrupted the pace of economic recovery,” Chan said as he announced that the digital vouchers would be disbursed in instalments starting from April. “I hope that the scheme will inject impetus to the market when the epidemic is stabilised so as to accelerate economic recovery.”