Hong Kong’s finance chief has revised the city’s deficit for the previous financial year to HK$80.3 billion (US$10.4 billion), 8 per cent lower than his original estimate, attributing the change to increased stamp duty income on stock trading and lower-than-expected departmental expenditure.
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Financial Secretary Paul Chan Mo-po on Wednesday also revealed that the government would take “careful consideration” before deciding on the launch of the proposed boundary facilities fee imposed on cross-border private cars amid criticisms from lawmakers, as they gave the green light to his belt-tightening 2025-26 budget.
His latest budget blueprint, unveiled in February, contained a string of measures to tap new sources of revenue and ease a HK$87.2 billion deficit, starting with a pay freeze for all public servants, a downsizing of the civil service and a cut in education spending.
Addressing lawmakers before the vote on Wednesday, Chan said the deficit for the 2024-25 financial year had been revised to HK$80.3 billion, HK$6.9 billion less than the original estimate.
“It was mainly due to the rise in stamp duty revenue on stock trading and the lower-than-expected departmental expenditure,” he explained.
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He added that fiscal reserves remained at a level equivalent to eight months of government expenditure and that the city’s economy had achieved “steady growth” for the first quarter of this year. But Chan stopped short of offering further details.