By South China Morning Post | Created at 2024-12-03 04:49:47 | Updated at 2024-12-04 09:03:52
1 day ago
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 gap.
Chief Executive John Lee Ka-chiu also stressed on Tuesday that the outlook of the Hong Kong economy and public revenues remained bright with Beijing’s policy backing, as well as the city’s 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 (S$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 Executive Council, the government’s decision-making body.
“These will include reducing government expenditures and 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,” he added.
