Govt to explore emerging markets to generate revenue amid $100b deficit projection: John Lee

Chief Executive John Lee Ka-chiu said the government intends to implement measures aimed at revenue generation and cost management --including exploring emerging markets -- in light of the deficit projected to double to approximately HK$100 billion for the 2024-2025 fiscal year.

The city leader said on Tuesday that the decline in land sales and land premium revenue, as well as the multiple rounds of extensive counter-cyclical measures aimed at supporting businesses and citizens, are contributing factors to the looming deficit.

When asked whether there would be a freeze or reduction in the salaries of civil servants, Lee did not directly respond but stated that the government would explore measures to increase revenue and manage costs.

He noted that will include reducing government expenditures, and the Financial Secretary has started formulating relevant measures. 

As for generating revenue, Lee said the government will be cautious and mainly focused on reducing the impact on citizens. 

This comes after Financial Secretary Paul Chan Mo-po revised the deficit forecast for the current fiscal year to approximately HK$100 billion, more than double the previously estimated HK$48.1 billion deficit in the budget presented in February.

It will also mark the fiscal deficit having reached HK$100 billion for three consecutive years. 

Lee added he is confident that the Northern Metropolis Development investment could bring good returns and called on the business sector to have an enduring strategy to capture the opportunities.