Financial Secretary Henry Tang says the Government is determined to tackle the budget deficit, and both the public and the legislators have shown their support to restore the fiscal balance.

International credit rating agency Standard & Poor's reaffirmed today its "AA-" long-term local currency rating. This means the outlook on the local currency rating remains negative.

Mr Tang said he is disappointed with the rating, and the agency's doubt over Hong Kong's effort to resolve the fiscal deficit under the current political climate is unnecessary.

He said past budget proposals have shown the Government's willpower to rein in the fiscal deficit. The proposals have also gained general support from the public and the Legislative Council.

Therefore, the agency's speculation the current political climate could restrict Hong Kong's effort to tackle the budget deficit cannot be established.

Mr Tang also stressed the Government has not included any new tax item in its revenue estimate for the coming five years. The issue of goods & services tax has only been raised for discussion only.

He said the rating, which has been in place for a long time, has not affected investors' confidence.