Chan Mo-po: The operating accounts for the fiscal year 2025/26 are expected to return to surplus ahead of schedule, with fiscal reserves projected to increase to HKD 700 billion by the 2030/31 fiscal year

The government has released a new fiscal budget. Financial Secretary Paul Chan stated that last year, the Hong Kong government set a goal to achieve surpluses in operating accounts and consolidated accounts starting from the fiscal years 2026/27 and 2028/29, respectively. After a year of efforts, and benefiting from strong stock market performance and accelerated economic growth, stamp duty and profits tax have collectively increased by nearly HKD 50 billion compared to original expectations. The operating account is expected to return to surplus ahead of schedule in the fiscal year 2025/26, while the consolidated account, including net proceeds from bond issuance, is expected to be roughly balanced.

He noted that the government's finances have shown significant improvement, and it is anticipated that the operating account will continue to maintain a surplus during the period from 2026/27 to 2030/31. The non-operating account is expected to show a deficit each year primarily due to high levels of infrastructure spending. During this period, it is expected that fiscal reserves will gradually increase to over HKD 700 billion.

Paul Chan emphasized that infrastructure projects are investments in Hong Kong's future, and therefore, the government will moderately increase bond issuance to meet funding needs in this area. He also pointed out that the government has always adhered to the principle of "no deficit" as stipulated in Article 107 of the Basic Law, striving to maintain a balance between revenue and expenditure throughout the economic cycle to ensure the resilience and sustainability of public finances