The upcoming budget will not bring many changes to the community so that people can have adequate time to recover from the recent economic turmoil, Financial Secretary Henry Tang says.

Speaking on an RTHK radio talk show this morning, Mr Tang noted the policy initiatives that have been in place since 1997 are beginning to take effect, and last year's budget introduced a number of changes.

It is time for Hong Kong to consolidate and see the way forward, he said, adding that he has to take stock of how much change people can endure.

More businesses, jobs to relieve fiscal deficit

Mr Tang said addressing the budget deficit was the top priority. He believed that a fiscal balance can be achieved by encouraging more business activities which will bring more jobs.

On the possibility of introducing a sales tax, he said even the Mainland has sales tax and value-added tax. He raised the subject since taking office last August to promote a more constructive and fair-minded discussion.

He pledged to take sufficient time to communicate with the public and educate them on this issue.

When asked about measures to improve the business environment, Mr Tang said it is important to make Hong Kong more business-friendly, to woo more investment, and to boost economic activities which will bring in more jobs.

Streamline committees to get more mileage

He pointed out that procedures for job creation, the economy and investments are closely linked, and believed that "we will get a lot more mileage if we combine them".

In this regard, a number of committees on employment and economic-related issues will also be merged into a new high-level body to simplify procedures and improve regulation.

A task force will also be set up to ensure tourism, infrastructure or logistics projects on Lantau be pursued efficiently.