Financial Secretary Paul Chan Mo-po has announced an array of industry spending and relief measures in Hong Kong’s budget, in response to the city’s quicker-than-expected return to a surplus of HK$2.9 billion (US$370.8 million) in its consolidated account.
In a two-hour address to the Legislative Council on Wednesday, Chan pledged substantial government support and investment in major development projects and key industries such as the artificial intelligence (AI), intellectual property (IP) and aerospace sectors.
He also proposed a strategic plan to use income from the Exchange Fund to finance projects in the Northern Metropolis, while introducing initiatives aimed at boosting tourism.
At the same time, he stressed the importance of prudent spending, announcing a 2 per cent cap on recurrent expenditure for the next two financial years.
Here are eight key takeaways from the financial blueprint.
1. HK$2.9 billion surplus in consolidated account
Hong Kong recorded a surplus of HK$2.9 billion in the consolidated account instead of an earlier projected deficit of about HK$67 billion, thus ending three consecutive years in the red.
