Govt to increase revenue and cut expenditure to improve financial situation, John Lee says

Chief Executive John Lee attended a press briefing today (Dec. 3), stating that the government will reduce spending from the two aspects of "increasing revenue" and "cutting expenditure."

Financial Secretary Paul Chan stated yesterday (Dec. 2) that based on preliminary estimates, the comprehensive deficit for the fiscal year 2024/2025 is approximately HK$100 billion, higher than the expected HK$48.1 billion in this year's budget. According to Lee, Chan has already started formulating relevant measures to boost economic momentum and minimize the impact on the public, he added.

Lee mentioned that the country has always been a strong backing for Hong Kong and also its greatest opportunity. With the national economy maintaining growth and continuously introducing measures beneficial to Hong Kong, such as Shenzhen resuming the multiple-entry Individual Visit Scheme on Dec. 1, making it more convenient for Shenzhen residents to visit Hong Kong, boosting the development of the city's tourism, retail, and catering industries, thereby stimulating the economic development.

"Furthermore, the three runway system at the airport has been initiated, and the Kai Tak Sports Park will open next year, which is believed to increase government revenue."

Lee also pointed out that the government is also enhancing the development of Hong Kong's financial industry.

"The country has expressed support for more mainland large enterprises to list in Hong Kong, and the Hong Kong Stock Exchange is continuously expanding cooperation with the Middle East and ASEAN, which is believed to boost the development of Hong Kong's finance and overall economy... The government is also constantly seeking new economic growth points, such as exploring emerging markets in the Middle East, ASEAN, and Central Asia," he noted.

Lee mentioned that the government's fiscal deficit is mainly due to lower-than-expected revenues from government land sales, property market transactions, and stock stamp duty, while the government is also helping the local economy recover and supporting the transformation and development of small and medium-sized enterprises, while also needing to maintain spending on public projects. He stated that he believes the Financial Secretary will soon commence consultations on the budget, and at that time, she hopes to hear more opinions from everyone.

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