Hong Kong reinforces fiscal consolidation in new budget

HONG KONG, Feb. 26 (Xinhua) -- The Hong Kong Special Administrative Region (HKSAR) will carry out the "reinforced version" of a fiscal consolidation program in the new financial year, said Paul Chan, financial secretary of the HKSAR government, while delivering the 2025-26 budget on Wednesday.

Chan said the approach will include a cumulative reduction of government recurrent expenditure by 7 percent from now through 2027-28.

Public expenditure must be strictly contained, but in a steady and prudent manner while a balance must be found among the various impacts that may arise in the process, Chan said.

While laying a sustainable fiscal foundation for future development, this approach represents the HKSAR government's all-out effort to minimize the impact on public services and people's livelihood, Chan said.

"It gives us a clear pathway toward the goal of restoring fiscal balance in the Operating Account in a planned and progressive manner," said Chan.

Dubbing technological innovation a "core engine" of economic growth, Chan stressed the need to boost new economic driving forces while enhancing the competitive edge of traditional industries at a faster pace.

To seize opportunities brought about by the rapid advancement of innovation and technology, the development of the Northern Metropolis must be accelerated, said Chan, adding that it is an investment in Hong Kong's future.

The financial chief said the HKSAR can suitably expand the size of bond issuance on the premise of maintaining healthy public finances and use the funds raised in a proper and flexible manner to invest in Hong Kong's future and create value for the society. ■