Hong Kong Fiscal Deficit - is it chronic?

antyeung · 18-03-2024, 03:31 PM

Why worry? Just borrow and issue more treasury bonds HK is a vibrant city, "we are back" and is a leading financial hub in Asia as well as globally. We have China as our solid foundation. There is nothing to worry about. Just don't cut public spending and everyone will be happy and support the government.

nivek2046 · 18-03-2024, 03:45 PM

Originally Posted by antyeung:

Why worry? Just borrow and issue more treasury bonds

HK is a vibrant city, "we are back" and is a leading financial hub in Asia as well as globally. We have China as our solid foundation. There is nothing to worry about. Just don't cut public spending and everyone will be happy and support the government.

is the heng seng up today?

ndt · 18-03-2024, 04:04 PM

Fiscal deficit is the last problem HK needs to worry about, policymakers and fearmongerers keep shouting from the rooftop to divert attention from real issues, use it as a tool to control the expectations of the poor, keep priorities in wrong place to build more shopping malls, bridge to nowhere, dystopian island, spend money to bring in tourists bla bla and show them the dream that these would bring more propserity to the city while in reality everyone knows.....

aw451 · 18-03-2024, 04:08 PM

Originally Posted by nivek2046:

is the heng seng up today?

Hang Seng is not a good indicator of the health of HKs economy

aw451 · 18-03-2024, 04:21 PM

Originally Posted by nivek2046:

1. Hong Kong has one of the widest gap between the rich and the poor in the world. Cutting government expenditure would widen this gap even further.

2. Hong Kong's public expenditure as a percentage of GDP is 28%, which is much lower than almost all developed countries.

Attachment 89805

The basic law requires HK to be a low tax economy with sensible spending. Our expenditure should be lower than other regions since services can be delivered a lot more efficiently in such a densely populated region.

The highest tax burden is already on people who own immovable property or live in private rentals (indirectly through land sales). It is not fair to add more tax.

nivek2046 · 18-03-2024, 04:27 PM

Article 107 The Hong Kong Special Administrative Region shall follow the principle of keeping expenditure within the limits of revenues in drawing up its budget, and strive to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product.
Article 108 The Hong Kong Special Administrative Region shall practise an independent taxation system. The Hong Kong Special Administrative Region shall, taking the low tax policy previously pursued in Hong Kong as reference, enact laws on its own concerning types of taxes, tax rates, tax reductions, allowances and exemptions, and other matters of taxation.

is Lantau Tomorrow against the Basic Law?