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Hong Kong budget 2022-2023
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The Legislative Council has approved a HK$700 billion budget. Photo: Winson Wong

Hong Kong legislature passes HK$700 billion budget with tax breaks, raft of subsidies for coronavirus relief

  • Bill approved with 87 supporting votes and no objections, while social welfare sector representative Tik Chi-yuen voted to abstain
  • Tik says budget indicates government will cut social welfare sector’s lump sum grants by 1 per cent

Hong Kong’s legislature has passed the administration’s estimated HK$700 billion (US$89 billion) budget that covers digital vouchers, tax breaks and a raft of subsidies to provide relief to those affected by the city’s fifth wave of coronavirus infections, with the bill backed by the pro-establishment bloc.

The bill on Wednesday was approved with 87 supporting votes and no objections. Social welfare sector representative Tik Chi-yuen, the sole non-establishment member in the 90-strong Legislative Council, voted to abstain, while Alice Mak Mei-kuen from the Hong Kong Federation of Trade Unions did not cast a vote, citing illness.

Tik said he did not support the budget because it indicated that the government would cut the social welfare sector’s lump sum grants by 1 per cent, equivalent to HK$200 million, an amount higher than previous years.

“The budget mentioned relief measures such as digital consumption vouchers … while cutting HK$200 million in social welfare grants. It might mean nothing for the government, but that would have a serious impact on the sector,” he said.

As the three-day debate over the bill was coming to an end, the meeting was briefly suspended for several minutes after a woman shouted in the public gallery. She was later expelled from the venue.

Hongkongers likely to get second batch of e-vouchers in summer

In 2020, Legco spent 47 hours debating the annual budget, as opposition lawmakers used filibusters to express their grievances against the government. Last year, the debate lasted for eight hours and took place after most members of the pro-democracy camp had resigned.

Beijing has since revamped the city’s electoral system to ensure that only “patriots” hold positions in Legco and the 1,500-strong Election Committee.

Under the budget unveiled in February by Financial Secretary Paul Chan Mo-po, which contained a HK$170 billion relief package, each permanent resident 18 or over will receive digital vouchers worth HK$10,000, costing the government a total of HK$66 billion.

Chan said after the passing of the budget bill that a review of the economic forecast in view of the latest situation would be announced by the end of this month. His budget estimated that annual economic growth would reach anywhere from 2 per cent to 3.5 per cent.

“Given that the local epidemic situation has stabilised and social-distancing measures have been relaxed, local demand has gradually improved. The city’s economy is on a recovery trend,” he said. “However, the overall economy is still being affected by a number of external factors, including ongoing geopolitical tensions, high inflation and Sino-US relations.”

Financial Secretary Paul Chan. Photo: Sam Tsang

Chan also pledged to work hard with authorities to implement various measures proposed in the spending blueprint.

The finance minister shrugged off questions on whether he would stay in the next administration.

“Thanks for your concern. In the meantime, I will just do my best in the follow-up work in the budget,” he said, adding that the city would overcome all kinds of challenges under Beijing’s support.

“This year marks the 25th anniversary of Hong Kong’s return to the motherland. I’m sure that with the nation’s firm backing, and the Hong Kong people’s can-do spirit and diligence, this city will overcome adversities and make unique contributions,” he added.

The vote for the chief executive will take place on Sunday. Former chief secretary John Lee Ka-chiu, the sole candidate with Beijing’s blessing, is expected to take over from outgoing leader Carrie Lam Cheng Yuet-ngor.

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