Hong Kong to be extra cautious while tapping income sources to cut deficit: John Lee
Chief executive also says economic outlook bright with Beijing’s backing and local push to expand presence in new overseas markets
Hong Kong’s leader has said the government will be extra cautious while tapping new sources of income as the city seeks to minimise the impact on residents and reduce its deficit.
Chief Executive John Lee Ka-chiu also stressed on Tuesday that the outlook for the economy and sources of public revenue remained bright with Beijing’s policy backing and the city’s own initiatives to expand its presence in new overseas markets.
On Monday, Financial Secretary Paul Chan Mo-po told lawmakers that the current 2024-25 financial year deficit would more than double to HK$100 billion (US$17.3 billion) from the previously forecast HK$48 billion.
The city leader said that in addition to land sales and stamp duty revenue being far lower than expected, the government also had to maintain spending on public works projects to support local businesses.
“The government will start by cutting expenditures and increasing revenue,” Lee told reporters before the weekly meeting of the key decision-making Executive Council.
“The financial secretary has already started formulating relevant measures. In terms of increasing revenues, the government will be cautious, especially to reduce the impact on residents.”
