13 things you need to know about in Hong Kong’s 2025 budget

Hong Kong’s finance chief has revealed a series of measures to strictly control government expenditure as the city grapples with an estimated deficit of HK$87.2 billion (US$11.2 billion) in the 2024-25 financial year and HK$67 billion in the next.

Unveiling his latest fiscal plan at the Legislative Council on Wednesday, Financial Secretary Paul Chan Mo-po said the government would also issue bonds and increase charges to boost revenue.

Here are 13 key takeaways from the latest budget blueprint.

1. Back to a surplus in 2026-27

The city’s operating account, which pays for daily expenses and receives various income from tax, investment and fees, will “largely achieve balance” in 2025-26 and return to surplus from 2026‑27.

But the government expects its capital account to record a deficit in the coming five financial years and start declining year on year from 2026-27 onwards as the administration remains committed to launching public works projects with an average estimated annual expenditure of HK$120 billion in the coming five years.

Chan said the government would utilise the surplus in the operating account or fiscal reserves to support its expenses on infrastructure projects, as well as leverage market forces by issuing bonds.

Between 2025-26 and 2029-30, the administration will also issue about HK$150 billion to HK$195 billion worth of bonds under the Government Sustainable Bond Programme and the Infrastructure Bond Programme annually.