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Hong Kong budget to hit record deficit of HK$139 billion with relief measures of HK$10,000 per individual and full loan backing for small firms
- All adult permanent residents in Hong Kong to receive the payment, plus HK$700 million boost for tourism hit by coronavirus and protests
- Government spending forecast to outstrip revenue by HK$139 billion in 2020-21, deficit predicted for six years in a row
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Hong Kong permanent residents aged 18 and above will each receive a cash handout of HK$10,000 (US$1,200) in a HK$120 billion (US$15 billion) relief deal rolled out by the government to ease the burden on individuals and companies, while saving jobs.
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Financial Secretary Paul Chan Mo-po confirmed an earlier Post report when he unveiled the payment during his budget speech on Wednesday morning, along with a full guarantee on loans taken out by companies to pay wages and taxes.
He has been under intense pressure from lawmakers to dip into the government's large fiscal reserves of about HK$1.1 trillion to help the city ride out the economic slump.
The economy has been battered by the coronavirus epidemic and months of anti-government protests, sparked by the now-withdrawn extradition bill. The relief package of HK$120 billion doubles last year’s sum.
KEY MEASURES
- Every Hong Kong permanent resident aged above 18 will receive HK$10,000 in cash, while the government also offers 100 per cent guarantee to Hong Kong companies taking low interest loans
- Individuals will receive rebates in salary and property tax, other government fees and a month of lower public housing rent
- The monthly allowance for low income families will be doubled and fees waived for public examinations to get into universities
- Lower profit tax for companies, government rents and rates to be reduced, electricity bills will be subsidised
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