FS Warns Of Scaling Back Of One-off Relief Measures

Financial Secretary Paul Chan on Sunday again flagged a shift in fiscal policy ahead of his budget next month, due to the huge government deficit.

The finance chief has already cautioned that a fiscal deficit of more than HK$100 billion is expected this tax year, while reserves could also fall to about HK$800 billion, equivalent to 12 months of government spending.

Writing on his official blog, Chan said there was a need to review current relief measures, although he said the administration wouldn't roll them all back in one go.

"With the lifting of Covid restrictions and the gradual border reopening with the mainland, the economy will definitely be better than last year. So, fiscal strategies also need to be adjusted," he wrote.

"But we still need to closely monitor the pace of economic recovery, especially when market confidence is relatively weak at the beginning of the reopening."

Chan also pledged to minimise the impact on the underprivileged, noting that the recovery remained weak despite the end of many Covid restrictions.