Thursday, November 26, 2015   

(2014-15 Budget) Tsang predicts fiscal deficit in seven years
(02-26 13:40)

Financial Secretary John Tsang Chun-wah warned that a structural budget deficit is inevitable.
He cited findings by a working group which predicted a deficit in seven years.
Tsang also forecast the economy to grow 3 to 4 per cent in 2014, below the average annual growth rate of 4.5 per cent over the past decade.
He said projections by the Working Group on Long-Term Fiscal Planning, “spark off a clear warning and call for serious attention. If government expenditure keeps growing and outpacing economic and revenue growth, a structural deficit would be inevitable.’’
If services were to be improved at about 3 percent annually for education, social welfare and healthcare, on top of adjustments for demographic and price factors, government expenditure would grow at an average 7.5 percent a year.
Such a scenario could lead to a structural deficit “in seven years' time,'' Tsang warned
Other Hong Kong breaking news:
Hong Kong trade slide continues in October (11-26 17:01)
Unsteady island seen as cause of bridge delay (11-26 16:46)
Elderly Wong Tai Sin wife killer jailed (11-26 13:45)
Hong Kong-Zhuhai-Macau bridge delayed until 2017 (11-26 13:28)
Ocean Park says Water World project costs rise to HK$2.9b (11-25 19:15)
Education chief gives wide berth to self-serving English skills survey (11-25 17:51)
Costly electricity subsidies rejected (11-25 17:36)
HKU panel begins search for managerial candidate (11-25 11:05)
Lau Kong-wah visits HK affairs office in Beijing (11-24 17:04)
Transport chief takes HK logistics message to Seoul (11-24 17:02)

More breaking news >>

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