Gov't undeterred by deficit: CS

February 26, 2020

Chief Secretary Matthew Cheung:
We expect a Budget deficit of about $139 billion. But the current-term Hong Kong Special Administrative Region Government has the courage to make optimal use of public resources, including our fiscal reserves accumulated over the years, to introduce a package of countercyclical measures amounting to $120 billion to support enterprises, especially the medium, small and micro enterprises, safeguard jobs, stimulate the economy and relieve people’s burden. The key measures include the most eye-catching $71 billion cash handout scheme to provide $10,000 for each Hong Kong permanent identity card holder to encourage and boost local consumption and relieve people’s financial burden. 

Other measures to relieve the burden of businesses and individuals include concessionary tax reduction measures, waiver of rates, fees of water and sewage charges, electricity charge subsidies, an additional month of allowance for social security payments, one months’ rental payment for lower income tenants of public housing rental units and more. 

This afternoon, as Chief Secretary for Administration, I will chair the first meeting of the Steering Committee on the Anti-epidemic Fund to review the latest progress, implementation framework and timetable of the 24 measures costing $30 billion to enhance Hong Kong’s capacity in preventing the epidemic and providing assistance or relief to enterprises such as restaurants, retail, travel agents, transport sector etc and members of the public hard hit by the epidemic or anti-epidemic measures. We will roll out the measures as soon as possible.

I must highlight that while the deficit will hit an all-time high, almost $120 billion are related to the cash payout scheme and other one-off relief measures which will not incur long-term financial commitments.

I strongly support this year’s Budget and fervently hope the Legislative Council will pass the Appropriation Bill as soon as practicable, so that the measures can be implemented for the benefit of the community.

The Government has the courage to make optimal use of public resources to introduce a $120 billion-package of countercyclical measures despite expecting a budget deficit of about $139 billion.

Chief Executive Matthew Cheung made the remarks to the media after the Financial Secretary presented the 2020-21 Budget today.

“We expect a budget deficit of about $139 billion. But the current-term Hong Kong Special Administrative Region Government has the courage to make optimal use of public resources, including our fiscal reserves accumulated over the years, to introduce a package of countercyclical measures amounting to $120 billion to support enterprises, especially the medium, small and micro enterprises, safeguard jobs, stimulate the economy and relieve people’s burden.

“The key measures include the most eye-catching $71 billion cash handout scheme to provide $10,000 for each Hong Kong permanent identity card holder to encourage and boost local consumption and relieve people’s financial burden.”

He noted other measures to relieve the burden of businesses and individuals include concessionary tax reductions, rates waivers, water and sewage charge waivers, electricity charge subsidies, an additional month of allowance for social security payments, one months’ rental payment for lower income tenants of public housing rental units and more.

Mr Cheung emphasised that while the deficit will hit an all-time high, almost $120 billion is related to the cash payout and other one-off relief measures that will not incur long-term financial commitments.

“I strongly support this year’s Budget and fervently hope the Legislative Council will pass the Appropriation Bill as soon as practicable, so that the measures can be implemented for the benefit of the community.”

Mr Cheung also pointed out that he would chair the first meeting of the Steering Committee on the Anti-epidemic Fund in the afternoon to review the latest progress, implementation framework and timetable of the 24 measures costing $30 billion.

These measures enhance Hong Kong’s capacity in preventing the epidemic and providing assistance or relief to restaurants, retail, travel and transport sectors, and people hard hit by the epidemic or anti-epidemic measures. The Government will roll out the measures as soon as possible, he added.