The Financial Secretary unveils the 2026-27 Budget, focusing on innovation, finance, and economic growth. Key measures include promoting AI development, establishing new innovation centers, enhancing family office tax regimes, and launching a rural tourism fund.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On February 25, 2026, the Financial Secretary, Mr. Paul Chan, presented the 2026-27 Budget. The budget emphasizes Hong Kong's opportunities arising from the National 15th Five-Year Plan and its commitment to high-standard two-way opening-up.
Mr. Chan underscores the importance of fostering new productive forces and leveraging Hong Kong's connectivity and talent pool to enter new markets. Key measures to drive innovation and technology development include establishing the Committee on AI+ and Industry Development Strategy, advancing the Sandy Ridge data facility cluster project, promoting AI training, and accelerating the digital transformation of the Government. The Industrialization of AI will be pursued to achieve widespread adoption across all industries, with the establishment of the International Clinical Trial Academy to support biomedicine technology and attract foreign investment.
To support new industrialization, resources will be allocated to Hong Kong's first national manufacturing innovation center, and the New Industrialisation Elite Enterprises Nurturing Scheme will be launched. Key infrastructure will be promoted through the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and San Tin Technopole.
In the financial sector, Hong Kong will align with national development strategies, advance the internationalization of the Renminbi, and continue to reform the securities market. Legislation will enhance tax regimes for family offices and funds, establish licensing regimes for digital asset dealing and custodian services, and launch the Northern Metropolis Urban-rural Integration Fund pilot scheme to support rural tourism projects.
Regarding land supply, specific arrangements will be announced quarterly, and the market will be developed steadily. Given the vacancy rate in the non-residential property market, general commercial sites will not be put up for sale in the coming year. Public finances are improving, with tax revenue rising due to economic growth and the capital market. The Operating Account has returned to a surplus, and the Consolidated Account is expected to be broadly balanced.
To alleviate economic pressure, several allowances will be increased starting from the year of assessment 2026/27, including the basic allowance, the single parent allowance, the married person's allowance, the child allowance, the allowance for maintaining a dependent parent or grandparent, and the deduction ceiling for elderly residential care expenses.
In conclusion, Mr. Chan acknowledges the global environment remains volatile but emphasizes Hong Kong's ability to thrive amid changes through innovation. Hong Kong must leverage its strengths and the country's resolute support to sustainably develop the economy, creating better opportunities for its people and enhancing their quality of life.
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