Financial Secretary John Tsang said the Government's overall expenditure in the coming financial year will amount to $486.9 billion, an increase of 14% compared to the current year, which will allow it to provide more services for the public.
Holding a press conference after delivering his 2016-17 Budget today, Mr Tsang mentioned the increase, saying people should not focus on the short term relief measures which only make up about 8% of overall expenditure, or $38.8 billion.
Expenditure on education, welfare and medical services will increase in the coming year, he said.
The rates waive for four quarters, subject to a ceiling of $1,000 per quarter, will reduce government revenue by $11 billion, he said, and can benefit public rental housing residents and owners of smaller properties.
Mr Tsang said it is not the time to relax property cooling measures, but the Government will closely monitor the situation, including market price and affordability, demand and the external situation, and continue to increase housing supply.
He said Hong Kong’s tax base is narrow and it is necessary to consider widening it at an appropriate time but it is not easy to do so when the Government has a surplus.
Mr Tsang said Hong Kong’s businesses will benefit from the opportunities brought by the Belt & Road initiative, and as a first step, they should get to know the countries it involves.
On the Mong Kok riot, Mr Tsang said such violent acts hurt Hong Kong society and the values it upholds. If it continues to happen it will result in irrecoverable damage.
He said Hong Kong is facing complicated and difficult problems which have formed over a long period of time, involving political and economic issues, and they cannot be solved by the Government alone.
