Remarks by FS at Budget press conference (with photos/video)

The Financial Secretary, Mr. Paul Chan, discussed various financial strategies and measures during a Budget press conference. He touched upon the potential legalization of basketball betting, revealing that the Hong Kong Jockey Club was reviewing the possibility, with anticipated annual revenues estimated to be between HK$1.5 to HK$2 billion. Additionally, Mr. Chan addressed the suggestion for introducing a new tax form to balance the government's deficit, emphasizing the need to consider Hong Kong's competitiveness and minimize impact on residents. The government's fiscal consolidation plan aims to reduce expenditure growth, expecting a 7% reduction by 2027-2028.

The Permanent Secretary for Financial Services, Mr. Andrew Lai, highlighted that the government's expenditure cut programme would save approximately $10 billion to nearly $25 billion annually over the next three years. This program aims to support the government's savings efforts and enhance public services.

In response to monetary policy adjustments by major central banks, the Financial Secretary stated that while liquidity would be enhanced, the most critical aspect is to improve Hong Kong's capital market competitiveness to attract more companies for listings. To mitigate external risks, the government plans to expand new markets and engage with new investor and capital sources.

Regarding Hong Kong's growth targets and land premium estimates, the Financial Secretary noted that the government was being conservative about land income estimates to maintain market confidence. The introduction of a fiscal consolidation programme will aim to diversify and grow the economy while minimizing any adverse impact on residents.

The Government Economist acknowledged that trade tensions between China and the US could have negative impacts, but they are deemed manageable due to favorable factors supporting Hong Kong's economy. Proactive fiscal and monetary policies, along with efforts to expand productive capacity and develop new growth areas, are anticipated to support economic growth in the medium term.