Editorial | Paul Chan can – and should – further loosen the purse strings
- With hundreds of billions of dollars still in reserves, Hong Kong’s finance chief has room to manoeuvre as city tries to recover from last year’s social unrest and this year’s coronavirus pandemic
This is unsurprising, given that the local and international economic downturn continues to worsen as Covid-19 has become a global pandemic. With still hundreds of billions of dollars in the city’s fiscal reserves, Chan must not rule out additional relief for the needy.
It is a wise step. The annual budget usually takes lengthy scrutiny and debate before it is passed by the city’s legislature. The process this year is particularly sensitive, as it also involves more funding for the police. The force has become a target of opposition lawmakers in the wake of its enforcement actions during last year’s social unrest.
The government, to its credit, has rolled out multiple rounds of relief measures for various industries since summer. But as the double blow of the extradition row and pandemic continues, more businesses are feeling the crunch. Airlines and tour companies are suffering the most as the outbreak forces people to scale back on travel. Meanwhile, class suspensions continue to take a toll on private kindergartens. Until the situation stabilises, the chorus for more government support will only become louder.
