Hong Kong’s heavy investment in public works will keep the capital account in deficit, highlighting the need for bond issuances to fund critical infrastructure and long-term development, the finance chief has said as he revealed the annual budget will be delivered on February 25.
Financial Secretary Paul Chan Mo-po also said on Sunday that core spending on education, healthcare and social welfare consumed nearly 60 per cent of the budget, even as higher stamp duty revenue and other income sources allowed the government’s operating account to return to a surplus earlier than expected.
In his official blog, Chan said while the city had successfully reined in spending through a strengthened fiscal consolidation plan, the benefits of infrastructure investments typically emerge slowly.
“We must actively invest in the future, particularly by speeding up the development of the Northern Metropolis, seizing opportunities without delay, and consolidating future growth drivers,” Chan said as public consultations of his 2026-27 budget entered their final month.
“The returns on infrastructure investment often only manifest gradually after completion. With the government’s increased investment in public works, the capital account for this financial year will still record a deficit.
“We will leverage market forces, including the appropriate issuance of bonds, to support infrastructure development.”
