HK budget surplus

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  1. #1

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    HK budget surplus

    The Wall St Journal is saying that the budget surplus will fall from 65billion to 10billion this year. Is this due to one offs or a future trend? If the latter what should be done if anything?


  2. #2

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    JOHN?

    Get rid of John Tsang

    Quote Originally Posted by hullexile:
    The Wall St Journal is saying that the budget surplus will fall from 65billion to 10billion this year. Is this due to one offs or a future trend? If the latter what should be done if anything?

  3. #3

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    Suspect the need for diversified (extra) tax revenues will be strongly suggested
    - VAT will be pushed again (good for big business and tourists)

    Last edited by East_coast; 26-02-2014 at 07:18 AM.

  4. #4

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    Still, government is sitting on a cash pile of something like HK$1 TRILLION. It either needs to cut taxes or spend some of that cash on the taxpayer.


  5. #5

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    I believe the fluctuation in the HK budget is mostly on the revenue side - namely, how much land was auctioned off and how many high-value property transactions were done (that's where the bulk of the stamp duty comes from iirc). Since one market has cooled down and the other pretty much dried up, it is quite likely the surplus has been reduced. Unlike many western countries, there aren't that many volatile costs (like unemployment benefit) - other than whatever one-off measures Tsang comes up with.
    Edit: infrastructure spending might be a culprit though - no clue how and when these costs are accounted for, but all the ship laying the foundation for the Macao-Zhuhai bridge must cost a pretty penny...

    Last edited by er2; 26-02-2014 at 07:56 AM.

  6. #6

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    HKZM Bridge is 9.2 billion, spread over 3-4 years and the money was allocated at the start of the project. Only a small part of the drop averaged over the lifespan of the project.


  7. #7

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    HKD? Wut? How come the new runway is then supposed to cost 100billion HKD??


  8. #8

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    I would imagine the Central government is covering a large portion of the costs. http://www.hzmb.hk/eng/about_overview_01.html