Few Giveaways Expected In Paul Chan's Budget

A smaller budget surplus and a scaling back of sweeteners are expected when the financial secretary delivers his budget speech later today.

The government posted a record surplus of HK$138 billion in the past financial year, with the coffers overflowing thanks to extremely active stock and property markets.

But a sharp slowdown in trading activity might have capped government revenue, and Paul Chan says he's expecting this year's surplus to be “more or less” the $46 billion he estimated back in February last year

So, the financial secretary may scale back one-off relief measures, such as salaries tax reductions and rate waivers.

Cash handouts are probably off the table, although he's likely to announce $2,000 for every needy pupils for a second year in a row.

New initiatives Chan is expected to propose include a $5 billion face lift for both sides of Victoria Harbour, and the renovation of 200 public toilets at a cost of $500 million.