Cash Better Than E-vouchers: Economic Scholar

An economics scholar on Tuesday said it would be better if the government gave people cash instead of electronic consumption vouchers – if officials decide to distribute a fresh round of handouts.

Financial Secretary Paul Chan is expected to deliver the Budget later this month, and some lawmakers want him to distribute another round of e-vouchers to help businesses hit by the latest Omicron outbreak.

Speaking on an RTHK programme, Kevin Tsui from Clemson University in the United States said cash and consumption vouchers have more or less the same stimulus effect.

"I think it's better to distribute cash because … they can spend it at any time they want. People would feel better," he said.

"If the aim was to encourage people to use electronic payments, the effect may not be the same since it's already been done last time."

When asked if it is better to distribute the handouts after the pandemic, he said the government should announce any plans as soon as possible.

But the chairman of the Federation of Hong Kong, Kowloon, New Territories Hawker Association, Chan Kam-wing, said people might save the money if they were given cash.

Mr Chan added that shoppers were also more "generous" after they received the e-vouchers last year.