Cash Handout Expectations Vary

The community has different expectations of cash handouts in the 2020-21 Budget and the Government will consider various factors in making a decision, Financial Secretary Paul Chan said today.

 

“We have heard the suggestion that even a smaller amount would be good because a handout from the Government will make people happier.

“We have heard the views and we will consider it in totality along with other factors.”

Meeting the media after attending a radio forum, Mr Chan also spoke on the 10 livelihood measures announced by the Chief Executive, noting that the reception from the public was positive.

“Those measures are welcomed by the community and we have to find resources to fund them.”

The Financial Secretary also commented on government revenue and expenditure.

“With a growing economy we will have better revenue income in terms of, say for example, profits tax,” Mr Chan said, adding that there may also be opportunities for the community to discuss whether the tax base needs to be broadened.

On the expenditure side, he said the Government has rolled out one-off relief measures over the years, including salaries tax and profits tax rebates, rates rebates and other expenditure items.

“The total amount ranges from over $20 billion to over $60 billion, which is quite a substantial sum.

“Perhaps some of these may be adjusted to accommodate the funding requirements of some of these measures recently announced by the Chief Executive.”