HK budget eyes growth amid fiscal consolidation

A view of the Victoria Harbor in Hong Kong. While Hong Kong's economic development will be sustained and solid in the medium term, the SAR government will implement a comprehensive fiscal consolidation program to contain operating expenditure growth and increase revenue as the city has incurred four budget deficits over the past five financial years. Amid the subdued economic environment, the SAR government revised its forecast consolidated deficit for the 2023-24 financial year to HK$101.6 billion, 86 percent higher than the figure forecast by Chan last February. "I welcome the budget's fiscal consolidation program, which focuses on restoring fiscal balance while fully taking into account the financial constraints of the public and businesses," said Hong Kong SAR Chief Executive John Lee Ka-chiu. Federation of Hong Kong Industries Chairman Steve Chuang said that amid challenges such as the fiscal deficit, an uncertain external environment and high interest costs, Hong Kong should "adhere to the prudent public finance principle of living within our means, while continuing to invest in innovative technologies and new industries and support small and medium-sized enterprises, reflecting the government's flexibility in financial management".