Accountants predict HK$288 budget deficit

Hong Kong will have a budget deficit of HK$288 billion for the financial year 2021, an accounting group said, compared with the Financial Secretary, Paul Chan Mo-po's forecast of HK$300 billion.

Stanley Ho, co-chairman of tax sub-committee, ACCA Hong Kong, said the stock market rally has generated more stamp duty income.

Reserves will drop to HK$872 billion from HK$1.16 trillion up to March 2021, equivalent to about 22 months of recurrent expenditure.

The group proposed a one-off HK$10,000 tax allowance and a waiver of the second instalment of 2020/21 provisional salaries and profits tax.