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HKSAR Government Budget 2021/22...

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  1. #1

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    HKSAR Government Budget 2021/22...

    Consultation begins.

    https://www.budget.gov.hk/consultation21/eng/index.html

    First, I think the HKSAR government should issue 20-year bonds worth HK$70 billion with PRC government as guarantor.

    Secondly, the HKSAR government should borrow another HK$70 billion from the PRC government (with low interest rate such as 1% per year) to be repaid in full in 20 years.

    Afterwards, cash handout for all HKSAR residents in two rounds: first round in Q1 2021, second round in Q3 2021.

    Economic recovery is expected at the end of 2021 or beginning of 2022, right?

    Last edited by nivek2046; 20-12-2020 at 12:21 PM.

  2. #2

    Rich HK borrow from the PRC? Playing with fire politically and risking looking like another Belt and Road debt colony.

    This is one place left where HK has some seeming autonomy, no?

    scan2gold likes this.

  3. #3

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    Quote Originally Posted by prospectiveHKer:

    This is one place left where HK has some seeming autonomy, no?
    The running line of thought in a few groups that I belong to is there is a lot of discreet wealth transfer from HK to up north through infrastructure projects.

    HK's private wealth ... not sure what %age of this is again from up north - certainly seems to have caused a decade long+ property and financial sector boom.
    hongkong7 likes this.

  4. #4

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    The HK government is flush with cash. They don't need to borrow money from the mainland.

    I don't agree with further handouts. They haven't really been very effective and aren't very fiscally responsible. They should be directly stimulating the economy rather than giving people cash and hoping that it somehow makes its way where it's needed.

    https://twitter.com/webbhk/status/13...872143875?s=19

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  5. #5

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    I wonder if the Bauhinia Party are also to raid, excuse me, liberate HK’s reserves for the benefit of the “people”.

    hongkong7 likes this.

  6. #6
    Quote Originally Posted by shri:
    The running line of thought in a few groups that I belong to is there is a lot of discreet wealth transfer from HK to up north through infrastructure projects.
    Definitely a widely held belief and probably only likely to intensify as HK is called upon to "contribute to national development." But going into debt to Beijing rather than transferring money to it (or serving as its fundraising center) would be a much deeper step...

  7. #7

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    Quote Originally Posted by shri:
    The running line of thought in a few groups that I belong to is there is a lot of discreet wealth transfer from HK to up north through infrastructure projects.

    HK's private wealth ... not sure what %age of this is again from up north - certainly seems to have caused a decade long+ property and financial sector boom.
    Uhhh, it's not exactly discreet is it? Like, building the world's longest sea bridge kind of isn't a discreet way of transferring some money... Neither would a giant reclaimed island that forever changes Hong Kong's cityscape.
    hongkong7 likes this.

  8. #8

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    Quote Originally Posted by aw451:
    The HK government is flush with cash. They don't need to borrow money from the mainland.

    I don't agree with further handouts. They haven't really been very effective and aren't very fiscally responsible. They should be directly stimulating the economy rather than giving people cash and hoping that it somehow makes its way where it's needed.
    What is a cash handout but a direct stimulus?

    What I think they should be doing, based on what I see around me as well as personal experience, and much as I hate even the semblance of agreeing with nivek, is some sort of unemployment support. How they could do it fairly, I don't know, but almost all the support so far has been for employers, thereby completely missing those who are already not employed...
    shri likes this.

  9. #9

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    In addition to employers' mandatory contributions, I think they should raise stamp duties, properties and profit taxes as well for the purpose of contributing to the Unemployment Benefits Scheme.

    In addition, 2% of the revenue raised via land sales by the government should be deposited into the Scheme.







    Last edited by nivek2046; 23-12-2020 at 10:16 AM.

  10. #10

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    Quote Originally Posted by nivek2046:
    In addition to employers' mandatory contributions, I think they should raise stamp duties, properties and profit taxes as well for the purpose of contributing to the Unemployment Benefits Scheme.

    In addition, 2% of the revenue raised via land sales by the government should be deposited into the Scheme.
    How socialist of you! You forget .. we're in the most free economy in the world or whatever ...

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