The city’s economy has been hit hard by the pandemic, recording a deficit of … The Financial Secretary for the Hong Kong Special Administrative Region (HKSAR), Mr. Paul Chan Mo-po, delivered his 2020-21 Budget speech today. Chan announced measures that include the following for the coming year starting in April: Hong Kong's fiscal reserves are expected to be 902.7 billion Hong Kong dollars ($116.4 billion) by end-March, and could fall to around 801.1 billion Hong Kong dollars ($103.3 billion) in a year's time, official estimates showed. Managing the Deficit Chan has warned the budget deficit will reach a record of some HK$300 billion in the current fiscal year ending on March 31, putting a serious strain on the government’s resources. It also "contains a massive package … Get this delivered to your inbox, and more info about our products and services. Sign up for free newsletters and get more CNBC delivered to your inbox. Hong Kong SAR has reported an unprecedented budget deficit of HK$257.6 billion (approximately US$33.2 billion) for the 2020-21 fiscal year, the largest deficit in 20 years. In a largely upbeat 2021-22 Budget, the Hong Kong Government is offering electronic consumer vouchers for residents while increasing the stamp duty on stock trading to help raise revenue. This is more than double the record HK$63.3 billion deficit of 2004, a year after the city was hit by Sars. The The fiscal deficits projected in the budget are thus unlikely to pose a near-term vulnerability for Hong Kong's fiscal profile, although they could ultimately put pressure on the rating in the absence of off-setting revenue measures to neutralise the potential onset of structural deficits associated with the city's ageing population. Chan told legislators he expected the budget deficit for the upcoming year to hit HK$101.6 billion ($13.10 billion), smaller than the record HK$257.6 billion expected for 2020/21. John Timpany, Partner, Head of Tax, Hong Kong, KPMG China, says: “Hong Kong’s lower-than-expected budget deficit in FY2020, which resulted primarily as a result of one-off support pandemic relief measures, demonstrates the underlying strength of Hong Kong’s economy, as the city faced a deep recession due to the pandemic. The government said last week it has purchased a total of 22.5 million doses of Covid vaccine — "sufficient" for everyone in the city. Chan said the city's economy will return to growth this year. Hong Kong budget: deficit, stamp duty and national security law spending among key takeaways from finance minister’s speech Joyce Ng joyce.ng@scmp.com 24/02/2021 Fitch Ratings-Hong Kong-11 May 2021: Egypt’s new draft budget continues the government’s fiscal and economic reform agenda, which is critical to reducing its high debt burden over the medium term, says Fitch Ratings. Hong Kong's government on Wednesday said the budget deficit is on track to reach a historical high of 139.1 billion Hong Kong dollars ($17.9 billion), or … Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Hong Kong budget: deficit, stamp duty and national security law spending among key takeaways. Budget deficit to hit HK$139bn next year: Paul Chan. We at Fitch Solutions have revised our 2021 fiscal deficit forecast for Hong Kong to 3.6% of GDP, from 6.6% of GDP previously, which represents a significant narrowing from the … The government recorded a budget deficit of … Around 8.4 billion Hong Kong dollars ($1.1 billion) for procurement and administration of Covid-19 vaccines. Following the lead of rival Asian financial center Singapore, Hong Kong will also taper its budget deficit to HK$101.6 billion — or 3.6% of gross domestic product — from HK$257.6 billion. Hong Kong's economy shrank 6.1% in 2020 — accelerating from the 1.2% contraction in the previous year, official data showed. Financial Secretary Paul Chan said on Wednesday that Hong Kong will see a budget deficit of HK$139.1 billion next year, accounting for 4.8 per cent of GDP. 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Chan announced the first fiscal deficit since 2003-04 for the financial year (FY) 2019-20 amid various headwinds, including prolonged social unrest, the US-China trade friction and the outbreak of the new coronavirus. The Chinese-ruled city’s … The budget deficit of HK$37.8 billion for 2019/20 is expected and fiscal reserves to reach HK$1,133.1 billion by 31 March 2020. A Division of NBCUniversal. Budget in Hong To meet these functions and public expectation, the Kong. "Hong Kong went through tribulations in the past two years," Hong Kong's Financial Secretary Paul Chan said in his budget speech on Wednesday. Hong Kong's government will record an unprecedentedly high budget deficit in 2020/2021, the finance chief says. The government of China's Hong Kong Special Administrative Region (HKSAR) is expected to see a deficit of 101.6 billion Hong Kong dollars (about 13 … 11:00 " Chan notes a tough year Chan says the past year has been challenging, and social unrest was unexpected for the government. Hong Kong’s finance chief on Wednesday unveiled a raft of tax breaks for businesses and residents, though many were on a smaller scale than last year’s initiatives given a budget deficit … Financial Secretary ("FS") presents the Budget with a huge deficit of HK$139.1 billion on 26 February, equivalent to 4.8% of Gross Domestic Product (GDP"). This is primarily due to the one-off pandemic relief measures granted in the past year. After Hong Kong has consistently generated a surplus of several billion euros per year for the past 15 years, a deficit of HKD 139 billion (approx. Data is a real-time snapshot *Data is delayed at least 15 minutes. HONG KONG, Feb 24 ― Hong Kong plans to run a much lower budget deficit in the coming fiscal year as the economy is expected to recover from its longest recession on record, Finance Secretary Paul Chan said today. He said GDP is expected to expand by 3.5% to 5.5% this year, and an average of 3.3% every year from 2022 to 2025. A man wearing a protective face mask stands on Kowloon's Tsim Sha Tsui waterfront that faces Victoria Harbour in Hong Kong. That said, the above forecast has not taken into account tax rebate and relief measures that the Government may implement. Hong Kong Financial Secretary Paul Chan announced the budget for 2021-22 on Wednesday. This is the fourth budget prepared by Chan since his appointment as Financial Secretary. Kevin Lai, chief economist for Asia ex-Japan at Daiwa Capital Markets, said the budget signalled that Hong Kong was trying to revert to living within its means. Electronic consumer vouchers are the sweetener for residents in a 2021-22 Hong Kong Budget that strikes a delicate balance between rebooting the economy and managing uncertainties from COVID-19. For individuals, support include a reduction in salaries tax, loan guarantees and consumption vouchers worth 5,000 Hong Kong dollars ($645) for each eligible resident. The deficits followed a 15-year period of accumulating surpluses. Among measures announced by Chan include a reduction in profits tax for businesses and consumption vouchers worth 5,000 Hong Kong dollars ($645) for each eligible resident. The budget envisages the central government overall deficit … Hong Kong Budget 2020: Deficit set to hit a record HK$139 billion next year, says finance chief Hong Kong Financial Secretary Paul Chan has announced that … Got a confidential news tip? Asked about the effectiveness of the consumption vouchers because many … "The overall budget … "As cross-boundary movement of people and tourism activities take time to resume normal, the economy will still face significant challenges in the first half of the year," he said in his budget speech. In the four financial years starting from 2021-22, there will be an annual deficit of about $50 billion in the Operating Account, and the overall deficit in the Consolidated Account will range between $7.4 billion and $17 billion. Hong Kong started its Covid vaccination program this week. But progress of the economic recovery this year "will hinge on the development of the epidemic," said the financial secretary. With a population of around 7.5 million, Hong Kong has reported more than 10,890 cases of the coronavirus and 197 deaths as of Tuesday, official data showed. The Hong Kong government will spend more than 120 billion Hong Kong dollars ($15.5 billion) in the coming financial year on measures to lift its economy, which has been in recession for two years. Hong Kong's economy could grow 3.5% to 5.5% in 2021. Hong Kong's Financial Secretary Paul Chan delivering the annual budget at the Legislative Council in Hong Kong yesterday. Chan said Hong Kong's economy is expected to grow by 3.5% to 5.5% this year, and an average of 3.3% per annum from 2022 to 2025. Over the past year, the government has increased spending — funded partly by drawing down its fiscal reserves — to help businesses and households cope with challenges posed by the Covid-19 pandemic. That has also brought the budget deficit to a record high of 257.6 billion Hong Kong dollars ($33.2 billion) in the current financial year ending in March, said Chan. The budget deficit for the coming financial year is estimated to be 101.6 billion Hong Kong dollars ($13.1 billion), he added. © 2021 CNBC LLC. "With the epidemic still lingering, our economy is yet to come out of recession," he said, according to an official English translation of his Cantonese speech. Chan told legislators he expected the budget deficit for the upcoming year to hit HK$101.6 billion, smaller than the record HK$257.6 billion expected for FY2020/21. Hong Kong's economy has suffered six consecutive quarters of contractions after battling multiple crises, including the U.S.-China trade war that intensified in 2018, months of pro-democracy protests in 2019 and the ongoing pandemic. The budget deficit for the coming financial year is estimated to be 101.6 billion Hong Kong dollars ($13.1 billion), he added. The fiscal reserve, which peaked at over HK$1.2 trillion in January 2019, shrank to less than HK$900 billion as of December. Chan warned that Hong Kong would suffer an annual deficit in the next few years because of rising recurring expenses and one-off anti-epidemic … All Rights Reserved. We want to hear from you. Financial Secretary of the Hong Kong Special Administrative Region, Mr. Paul Chan Mo-po, delivered the 2020/21 budget speech this morning (26 Feb). HONG KONG (Reuters) – Hong Kong plans to run a much lower budget deficit in the coming fiscal year as the economy is expected to recover from its longest recession on record, Finance Secretary Paul Chan said on Wednesday. HONG KONG, Feb. 24 (Xinhua) -- The government of China's Hong Kong Special Administrative Region (HKSAR) is expected to see a deficit of 101.6 billion Hong Kong dollars (about 13 billion U.S. dollars) for the 2021-22 financial year, the third straight year with a budget deficit. Financial Secretary Paul Chan said on Wednesday that Hong Kong will see a budget deficit of HK$139.1 billion next year, accounting for 4.8 per cent of GDP. 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