Deficit forecast to double to HK$100 billion, says Paul Chan

Financial Secretary Paul Chan Mo-po revised the deficit forecast for the current fiscal year to approximately HK$100 billion, which represents more than a double increase from the previously announced deficit of HK$48.1 billion in the budget presented in February.

Speaking in a Legislative Council meeting on Monday, the finance chief said that taking into account the bond issuance and settling the debts, the consolidated deficit for the whole year is expected to rise to around HK$100 billion.

He noted that given the uncertain economic climate expected next year, the government will assess its revenue, expenditures, and fiscal reserves to formulate strategies aimed at restoring fiscal balance over the coming years.

Chan earlier this year noted that the budget deficit in FY2024/25 will narrow by more than half to HK$48.1 billion.

Hong Kong posted a consolidated deficit of HK$101.6 billion for FY2023/24.