Editorial | Budget may not be to everyone’s liking but it is a step on the right path for Hong Kong
- Even though the city is in a stronger position now than in recent years, the prevailing crisis of confidence must not be ignored
Beset with a slower-than-expected post-Covid recovery, a ballooning budget deficit and a deepening crisis of confidence, Financial Secretary Paul Chan Mo-po finds himself in an unenviable position as he tries to turn around Hong Kong’s fortunes. While the 2024-25 budget blueprint lacks the usual generous handouts and sweeteners, it has been spiced up with an array of immediate and longer-term economic and fiscal measures that, hopefully, can consolidate the city’s well-being.
But it also means the year ahead will be fraught with uncertainties and challenges.
Having been at the helm since 2017, Chan is well aware of the heavy burden arising from a raft of pressing problems. This includes restoring a balanced budget by raising revenues and cutting spending without adversely affecting businesses and people’s livelihoods, while rekindling local and overseas confidence in the city’s future and fostering economic growth.
While these issues have arguably made this year’s budget his most difficult, Chan must be relieved that the city is gradually putting its worst years behind. The economy is expected to grow at a steady pace of 2.5 per cent to 3.5 per cent in the medium term.
A budget surplus is expected to return by 2025-26, after a staggering HK$101.6 billion and HK$48.1 billion deficit in the current and next financial year, respectively. The fiscal reserves remains at a relatively healthy level of HK$733 billion.
