Hong Kong Budget

The Financial Secretary, Mr Paul Chan, delivered the 2023-24 Hong Kong budget on 22 February 2023. This is the first budget presented by the current-term Government and since the resumption of quarantine-free travel with the Mainland and international community.

On 24 February 2021, against the backdrop of political uncertainties, competition from neighbouring countries and the economic recession aggravated by Covid-19, the Financial Secretary, Mr Chan Mo-Po (“Mr Chan”), delivered the 2021-22 budget speech at Legislative Council.

The Government has rolled out a total of around HK$300 billion in Covid-19 relief measures to help businesses and individuals hit hard by the Covid-19 and Mr. Chan forecasted a record high deficit of $257.6 billion for 2020-21. The fiscal reserves are expected to drift lower to $902.7 billion by the end of March 2021. Mr. Chan also anticipated the city would suffer an annual consolidated deficit in each of the fiscal years from 2021-22 to 2024-25.

Facing the challenges of fiscal deficits, the scale of proposed sweeteners has been adjusted this year. There will be a reduction of final profits tax, salaries tax and tax under personal assessment for 2020-21 by 100%, subject to a ceiling of $10,000, down from $20,000 last year. On the other hand, the Government proposed to issue electronic consumption vouchers in instalments with a total value of $5,000 to each eligible Hong Kong permanent resident and new arrival aged 18 or above with an aim of stimulating the economy and facilitating the speedy recovery of the consumption market.

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The Financial Secretary, Mr Paul Chan (“Mr Chan”), delivered the 2019-20 budget to the Legislative Council on 27 February 2019.

Mr Chan revised the estimated surplus for 2018-19 to HK$58.7 billion, which is higher than the original estimate of HK$46.6 billion but only amounted to around a third of the last year’s figure of HK$148.9 billion. The continuing trade disputes among major economies and the raise in protectionism present significant challenges to Hong Kong. Hong Kong’s economic growth slowed to below 1.5% in the 4th quarter of last year, which was the weakest since the 1st quarter of 2016. Hong Kong GDP has only grown by 3% for the whole of 2018, which is the bottom end of the government forecasts. With uncertainties like the US-China trade disputes, slow down of China economy and the effects of Brexit, Mr Chan estimated that the Hong Kong economy could slow further this year.

The Financial Secretary, Mr Paul Chan, presented the last budget of the current term government to the Legislative Council on 22 February 2017. As anticipated, the Government once again recorded a much higher surplus than its previous estimate. The revised estimate surplus for 2016-17 is HK$92.8 billion as compared to the original estimate of HK$11.4 billion. This is mainly due to the increase in revenue from land sales and stamp duty.

On 25 February 2015, Mr John Tsang delivered his eighth government budget since he became the Financial Secretary.