Hong Kong has logged a deficit of HK$172.9 billion in the first seven months of this fiscal year.
According to official figures released on Thursday, the government had spent a total of HK$413.9 billion and had earned HK$174.4 billion between April – the beginning of the city’s financial year – and October.
After taking into account a profit of HK$66.6 billion generated from the issuance of green bonds under a government-led initiative to promote green finance, that left a cumulative deficit of HK$172.9 billion.
The fiscal deficit has dipped from September figures, which stood at HK$177.7 billion. A government spokesperson said the deficit was due to the fact that some major government revenue streams, including salaries and profits taxes, were generally received towards the end of the financial year.
The fiscal reserves stood at HK$661.9 billion as of October, down from HK$834.7 billion at the beginning of the financial year.
Economic woes
Financial Secretary Paul Chan warned in October that the city could see a fiscal deficit of more than HK$100 billion, doubled his earlier estimate for this financial year’s shortfall.
According to Chan’s budget announced in February, an estimated HK$140 billion deficit was recorded in the previous financial year, which ended on March 31. The finance chief predicted then that the deficit for 2023-24 would be HK$54.4 billion.
But Chan raised his estimate shortly after Chief Executive John Lee announced his second Policy Address, which included measures to revive a stagnant economy that would raise the government’s recurrent expenditure by billions.
Chan also cited the city’s slow post-pandemic recovery and reduced revenue from land sales and stamp duty for the doubled deficit estimate. Worsening geopolitical tensions could add uncertainty to the global economy, making Hong Kong’s economic situation more challenging still, he added.
Support HKFP | Policies & Ethics | Error/typo? | Contact Us | Newsletter | Transparency & Annual Report | Apps
Help safeguard press freedom & keep HKFP free for all readers by supporting our team
LATEST FROM HKFP
HKFP has an impartial stance, transparent funding, and balanced coverage guided by an Ethics Code and Corrections Policy.
Support press freedom & help us surpass 1,000 monthly Patrons: 100% independent, governed by an ethics code & not-for-profit.
