Hong Kong's Budget Deficit - 2024-2025

[PLamHK]

I was thinking of the largest 10 employers in HK (ie running business in HK). I don't know why the list is not showing:

https://www.financecharts.com/screen...Interest%20Cov.

The list is the number of WORLDWIDE employes of companies nominally headquartered in Hong Kong! Surely it is obvious to you that, for example, WH Group (a producer of pork products, primarily in the USA) does not employ 101,000 people in Hong Kong? Or that Yue Yuen (a major manufacturer of branded sports apparel in China) doesn't employ 277,000 people here?

With respect, you really need to get out more and get a bit less detached from reality!

[aw451]

I was thinking of the largest 10 employers in HK (ie running business in HK). I don't know why the list is not showing:

https://www.financecharts.com/screen...Interest%20Cov.

I understand what you are trying to say but apart from Beijing, they are pretty much the only other stakeholder the government has to listen to. Nobody is going to make the oligarch's lives harder

[nivek2046]

the government is not ready, willing nor able to:

(a) raise the profit tax (for reasons known to all)
(b) sell more lands (for reasons known to all)
(c) borrow more (for reasons known to all)
(d) halt the constructions of Northern Metropolis, Tomorrow Lantau, etc

but the government is ready, willing or able to

(e) cut the subsidies, subventions or benefits for the poorest
(f) evict those living in subdivided units, thereby raising rents substantially for the poor
(g) cut salaries of civil servants and of senvented organizations.
(h) even consider introducing GST/VAT so that the poor would pay taxes (without representations), thereby sending the retail/wholesale/tourism industries into the doldrums

I think I finally realise why the government says it would take three to five years for them to come back to fiscal surplus.

Three to five years from now, most of the HKers (who had left HK in the last few years) would have acquired foreign citizenships (eg UK, Canada, Aus, NZ).

The government is hoping or expecting these HKers would return to Hong Kong in the next three to five years immediately after obtaining such foreign citizenships!!!

[But by then, would they be able to withdraw their MPFs?]

[hullexile]

the government is not ready, willing nor able to:

(a) raise the profit tax (for reasons known to all)
(b) sell more lands (for reasons known to all)
(c) borrow more (for reasons known to all)
(d) halt the constructions of Northern Metropolis, Tomorrow Lantau, etc

but the government is ready, willing or able to

(e) cut the subsidies, subventions or benefits for the poorest
(f) evict those living in subdivided units, thereby raising rents substantially for the poor
(g) cut salaries of civil servants and of senvented organizations.
(h) even consider introducing GST/VAT so that the poor would pay taxes (without representations), thereby sending the retail/wholesale/tourism industries into the doldrums

I think I finally realise why the government says it would take three to five years for them to come back to fiscal surplus.

Three to five years from now, most of the HKers (who had left HK in the last few years) would have acquired foreign citizenships (eg UK, Canada, Aus, NZ).

The government is hoping or expecting these HKers would return to Hong Kong in the next three to five years immediately after obtaining such foreign citizenships!!!

[But then, would they be able to withdraw their MPFs?]

I like the chart. Was there a projection for the next 3-5 years of the reserves in terms of number of months?

[nivek2046]

I like the chart. Was there a projection for the next 3-5 years of the reserves in terms of number of months?

i don't know.. got it from China Daily..

https://www.chinadailyhk.com/hk/article/378780

[nivek2046]

I like the chart. Was there a projection for the next 3-5 years of the reserves in terms of number of months?

PwC says:

The macro-economic factors outlined above are evident in Hong Kong’s reserves. PwC estimates that, as of 31 March 2025, the fiscal reserves will drop to HK$639.8 billion, equivalent to approximately ten months of government expenditure. This is the lowest level of fiscal reserves registered by the Government – the highest level being 28 months.

https://www.pwchk.com/en/press-room/...pr-080125.html

[BandT]

The quality of comment by PWC is shockingly bad. What? The answers lie in attracting more family offices and more tax cuts - yeah right. That will do nothing to help boost the government's coffers, though it will help PWC generate more revenue in advisory services.

In my opinion the time has come for the government to really knuckle down on waste. I see it everywhere. Do we really need 4 government departments doing the same thing to help SMEs? https://www.cedb.gov.hk/en/business-...e-support.html

Why is the government paying for start-ups from SE Asia to come to Hong Kong and get free rent in the Science Park? Talk about corporate welfare. How many of these start-ups go bankrupt without creating a single job. How much money did Physical take from the government before it went bankrupt?

Let SMEs get loans in the private market like any decent entrepreneur.

[freeier]

even hku is saying spending is too much and its a structural deficit...

[hullexile]

even hku is saying spending is too much and its a structural deficit...

Perhaps start with the HKU? 60% of their income is from the government

https://www.hku.hk/about/university-today/finance.html

[BandT]

Agree, HKU"s alumni is HK"s elite, time they coughed up ... unless they want to see HKU fall behind CUHK. Besides, HKU could always double their tuition fee for mainlanders and won't suffer any consequence ...