The Institute of Certified Public Accountants expects the fiscal deficit for this year to decrease to 1.4 billion

The Hong Kong Institute of Certified Public Accountants estimates that the government will record a deficit of approximately HKD 1.4 billion in the fiscal year 2025 to 2026; it is expected that by March this year, the government's fiscal reserves will be around HKD 652.9 billion, equivalent to about 10 months of government expenditure.

The chairman of the Institute's Executive Committee, Yang Zezhi, stated today (29th) on a radio program that driven by increased revenue from stock market stamp duties and improved investment returns, the government's fiscal deficit is expected to narrow significantly from HKD 67 billion to HKD 1.4 billion, and the operating accounts will also record a surplus.

He also pointed out that the government still manages foreign exchange fund assets and has relatively low borrowing, believing that the government's financial situation is stable.

Regarding the new budget proposal, the Institute recommends a one-time 100% reduction in salary tax and profits tax for this fiscal year, with a cap of HKD 5,000, or increasing the personal tax allowance to alleviate pressure on citizens and businesses. At the same time, it suggests raising the stamp duty on rental properties to encourage citizens to buy homes instead of renting; allowing buyers purchasing residential properties for personal use to pay stamp duty in three equal installments over three years