HK to focus on cost-cutting as deficit estimated to be just below HK$100b, says Paul Chan

Financial Secretary Paul Chan Mo-po estimated that the fiscal deficit for the current year will be just below HK$100 billion, adding that cost-cutting measures will be prioritized to achieve a balance.

Speaking on RTHK's "Voices from the Hall", where he gathered public feedback ahead of the upcoming budget, Chan said the city is currently facing the challenge of deficits post-Covid, along with the need to allocate more resources to drive economic development.

He anticipates the fiscal deficit for the current year to be below HK$100 billion, prompting the government to review its fiscal consolidation plan and explore opportunities to achieve a balance through revenue increase and cost reduction strategies.

Cost-cutting measures will be prioritized to control the growth of recurrent government expenditure while infrastructure projects will be handled based on urgency, with an aim to minimize the impact on citizens.

Some 130 citizens attended the session today, with suggestions including restoring a land-sale mechanism - which was scrapped more than a decade ago, and providing incentives for developers.

Abolished in 2013, the application-based mechanism had allowed developers to apply for, and then offer a price for sites listed by the government, before authorities put the plot up for sale.

Chan insisted the government will not restore the mechanism, emphasizing that the government wants to take the lead in land sales. He also noted that current land sale policies better align with societal needs and public interests.

Meanwhile, some attendees wanted to discuss the government's HK$2 transport subsidy scheme, with the financial chief responding that the labor and welfare officials are studying different views on the matter.