Government to minimise strain on Hongkongers while seeking to spend less: Paul Chan

Increase in expenditure on subsidy schemes has put ‘significant long-term pressure’ on government spending, finance chief says

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Finance chief Paul Chan says the government will prioritise spending on public projects such as the Northern Metropolis. Photo: May Tse

Published: 4:45pm, 5 Jan 2025Updated: 11:38pm, 5 Jan 2025

Hong Kong’s finance minister has pledged the government will seek to minimise any negative impact on residents’ lives when reviewing subsidy schemes as part of efforts to tackle a deficit that has ballooned to nearly HK$100 billion (US$12.85 billion).

Paul Chan Mo-po also said on Sunday that in planning spending the government would focus on prioritising public work projects, with the Northern Metropolis border town development and others related to housing and economic development going to the head of the line.

Writing on his weekly blog, Chan underscored the need to maintain sustainable public finances, noting the estimated deficit for the current financial year was expected to reach just below HK$100 billion, more than double the HK$48.1 billion projected in last February’s budget.

The latest estimate was similar to the 2023-24 deficit of HK$101.6 billion.

“Only through better economic development can resources be created to support the implementation of various social services and create more and better job opportunities for residents,” Chan wrote.

“At the same time, the sustainability of public finances must also be faced up to and sorted out. This is related to the stability of the economy and society, and is also related to the continuous improvement of social services.”