China News Agency, Hong Kong, February 26 (Reporter Han Xingtong) On February 26, Chen Maobo, the Financial Secretary of the Hong Kong Special Administrative Region Government, issued a new "Budget", which proposed to issue to Hong Kong permanent residents aged 18 or above1 Million Hong Kong dollars. Later, when he held a press conference, Chen Maobo stated that since last year, the Sino-US trade frictions and social events have affected one another, and a new crown pneumonia epidemic occurred earlier this year. The Hong Kong economy has entered a cold winter, so the cash distribution plan is a special measure under special circumstances.
Chen Maobo admits that Hong Kong's current economic situation is very poor. Since the second half of last year, Sino-US trade frictions and social events have affected the economy. At the beginning of the year, a new crown pneumonia epidemic has emerged and the economy has entered a cold winter. GDP in the third and fourth quarters of last year fell by 2.9% and 2.8% year-on-year, respectively. It is expected that the first quarter of this year will also be quite poor, and the economy needs to be stabilized as soon as possible. Chen Maobo pointed out that the purpose of the cash distribution plan is to stimulate national consumption after the epidemic and work together to support the economy. The plan is a special measure under special circumstances and does not constitute a long-term economic burden.
At the same time, the SAR Government will have a deficit of approximately HK $ 37.8 billion in 2019/20, and the fiscal deficit next year is expected to be HK $ 139.1 billion. Chen Maobo said that in the face of fiscal deficits, open source and throttling need to think and discuss from multiple aspects.
In terms of increasing income, the SAR government will consider promoting economic development, especially diversified economic development. For example, the new Budget has proposed related measures on the financial services industry, and also increased funding for the innovation and technology industry. Chen Maobo revealed that in the future, it will not be ruled out that the tax rate will be adjusted and new taxes will be introduced to increase revenue.
On the other hand, reducing expenditure growth and even further reducing expenditure are also the future direction of the SAR Government. Chen Maobo said that in the past, the SAR government has successively introduced different one-off relief measures, but the specific economic situation and financial situation may shrink in the future. (Finish)