[Explanation] On February 26, Chen Maobo, the Financial Secretary of the Hong Kong Special Administrative Region Government announced the 2020/2021 Budget of the current government, announcing that it will make good use of fiscal reserves and assist the public through a series of extensive measures. Expenditure exceeded HK $ 120 billion. Among them, in order to boost the economy, encourage and stimulate local consumption, and alleviate the economic pressure on the public, Chen Maobo announced that he would issue HK $ 10,000 per person to Hong Kong permanent residents aged 18 or above.
[Explanation] Chen Maobo pointed out that Hong Kong's economy has shown negative growth in the second half of 2019. Entering January 2020, affected by the new crown pneumonia epidemic, Hong Kong's economy was further hit. Faced with the economic downturn, government revenue is expected to decrease in the coming year; the government must manage its finances prudently to ensure fiscal stability. However, in times of economic downturn and heavy social atmosphere, even in the face of fiscal deficits, the government should do more. Therefore, the government has decided to issue HK $ 10,000 per person to Hong Kong permanent residents aged 18 or above. The measure is expected to benefit about 7 million people.
[Concurrent] Chen Maobo, Financial Secretary, HKSAR Government
After careful consideration, I will issue HK $ 10,000 to Hong Kong permanent residents aged 18 or above, on the one hand, to encourage and stimulate local consumption, and on the other hand, to ease the economic pressure on the public. The measures are expected to benefit about 7 million people and involve spending of about 71 billion Hong Kong dollars. The Government will announce the details of the plan as soon as possible after the funding is passed by the Legislative Council.
[Explanation] In addition, in order to alleviate the hardships of the people, Chen Maobo proposed a reduction of salaries tax and personal income tax, annual rates for residential properties, and an additional one-month comprehensive social security assistance for people receiving social security benefits. Measures such as standard payment, old age allowance, elderly living allowance or disability allowance. In terms of "supporting enterprises and securing employment", Chen Maobo also proposed measures to reduce profits tax, non-residential property rates, business registration fees and other measures, involving expenditures of about 18.3 billion Hong Kong dollars.
[Explanation] In the face of the current outbreak of new crown pneumonia, controlling the epidemic and stabilizing the economy are the most urgent tasks of the SAR government. In terms of epidemic prevention and control, on the one hand, the SAR government actively searches for and purchases anti-epidemic products around the world, and also provides funding to promote local production to meet some needs. The HK $ 30 billion Epidemic and Epidemic Prevention Foundation established by the SAR government recently strengthened this work; At the same time, in the new Budget, adequate financial support will be provided to the Hospital Authority and the Department of Health for epidemic prevention work.
[Concurrent] Chen Maobo, Financial Secretary, HKSAR Government
The accounts of the SAR government in 2019/2020 are in red. It is the first fiscal deficit in Hong Kong in 15 years. The forecast for the next five years is still a deficit. The fiscal deficit next year is expected to be 139.1 billion Hong Kong dollars, equivalent to 4.8% of GDP. Although the amount of this deficit is the highest ever, as long as you carefully examine its composition, you will find that more than 120 billion yuan in the deficit is related to the cash distribution plan and other one-time relief measures, which will not constitute a long-term financial burden.
Reporter Li Yuqi Hu Dingxuan reports from Hong Kong
Editor-in-chief: [Liu Xian]