Editorial | Chan pins hopes on innovation in testing budget that seeks to bring gains from pain
By doubling down on fiscal austerity and promoting economic development through investment in AI, Hong Kong’s financial secretary is putting the city on the right track
Reform and innovation have rightly taken the lead in the budget this year. Financial Secretary Paul Chan Mo-po is seeking breakthroughs in economic development with investment in artificial intelligence (AI) and other reasonable initiatives, while working hard to reduce the impact on business and individuals with a raft of unpopular but necessary measures to tackle the deficit.
In tabling his most difficult blueprint yet amid growing economic headwinds and fiscal constraints, Chan is well aware that he needs to go beyond just balancing the books.
In addition to some cost-cutting and revenue proposals, there are short- and long-term policies to stimulate growth and development.
Token tax concessions, including a HK$1,500 (US$190) ceiling for salaries and profits tax and an extra half-month welfare allowance for the underprivileged, may even have come as a pleasant surprise to those not expecting anything.
By leveraging on AI, expediting the Northern Metropolis project and seeking to stabilise the property market and business environment, Chan is putting the city on the right track for the next stage of development that compliments the national strategy, while doubling down on fiscal austerity in an attempt to restore some balance, a constitutional duty that cannot be ignored.