Hong Kong budget: with lower-than-expected deficit, should relief go to masses or only targeted groups? Finance chief Paul Chan voices dilemma
- Ahead of coming address in February, financial secretary has faced mounting calls to roll out fresh round of consumption vouchers or more sweeteners
- He says targeted approach may lead to backlash over ‘differential treatment’, while uniform aid for all may not be enough for vulnerable groups
Hong Kong’s finance chief has said it will be a challenge to decide whether to target specific groups for benefits or distribute relief to the masses in the budget to be unveiled next month, with the city set to enjoy a much lower fiscal deficit than expected.
“If relief measures ‘strive to be precise’ and focus on a certain group of target audiences, it would cause backlash easily due to ‘differential treatment’. On the contrary, even if measures benefit the masses, it might be seen as providing insufficient support for the vulnerable groups,” he said.
Chan has been in consultation with stakeholders and lawmakers for two months to gauge views on the 2022-23 budget, expected to be announced on February 23.
Considering the less-than-expected deficit for the 2021 financial year, all eyes are now on how the city government could make good use of its coffers to support businesses and the general public facing hardship under stringent Covid-19 control measures.
Hong Kong has extended bans on evening dine-in services and flights from high-risk countries until February 4, with the city not yet out of the woods from an Omicron-fuelled wave of infections.