This is your chance to brush up budget

Sophie Hui

The SAR's economic contraction could next year reach 3.2 percent, Financial Secretary Paul Chan Mo-po said as he launched a public consultation of the next budget, which he will deliver on February 22.

In a promotional video to call on people to make their opinions regarding the budget known, Chan is dressed as a painter and asks: "How should we paint this picture?"

He goes on: "Make good use of color to paint a brighter future for Hong Kong. Let's paint a beautiful picture together!"

But away from the colorful approach, Chan admitted that planning the budget is again under a more difficult background than last year and said the fiscal deficit for this year will exceed HK$100 billion.

"The pandemic and the geopolitical situation have led to global supply chain disruptions, high inflation, interest rate hikes and tightened monetary conditions," he said.

"Hong Kong's economy is thus under relatively greater downward pressure and is expected to contract by 3.2 percent this year."

Chan expects the external environment next year will continue to "be complex and challenging."

But, he added, "as our connection and exchanges with the mainland and the rest of the world resume normalcy gradually, Hong Kong's economy will likely gather steam again.

"When preparing for the 2023-24 budget we will on the one hand continue to strive for stabilizing and stimulating the economy as well as easing the pressure on members of the public and businesses and on the other hand plan for Hong Kong's long-term development and to allocate resources appropriately."

Chan also said in his blog yesterday that the next budget will plan for the allocation of public resources in the next financial year and for the longer term in providing for high quality public services despite the fact resources are not unlimited.

So the budget aims to take a forward-looking perspective to make strategies for boosting the SAR's economic recovery.

Chan noted that consultation sessions have been held in various sectors.

"Many participants are concerned about the status of public finance and think the government should narrow the range and scope of giving out sweeteners to cut expenses and to reduce the deficit to avoid a further reduction in fiscal reserves," he said.

He also said some people think there should be solid support for small and medium-sized enterprises, citizens and especially people at the grassroots as the economy remains weak.

So officials have to pay attention to various sectors, he said.

Chan also said the business sector has an optimistic attitude on the recovery next year because Hong Kong and the mainland have been adjusting anti-epidemic measures.

Additionally, travel overseas resume gradually.

But he said the administration will still need to prevent any uncertainties brought about by market conditions and investment sentiment.

People who want to submit views can visit www.budget.gov.hk, the dedicated Facebook page www.facebook.com/BudgetGovHK or submit thoughts by email (budget@fstb.gov.hk), phone (2810-3768), fax (2147-5770) or mail to the government headquarters at Tamar.