I think cutting revenues and expenditure is a better plan than a spending stimulus. Especially when government spending is limited to 20% of GDP and HK is constitutionally bound to aim for a balanced budget and avoid deficits.
1
They could start by cancelling their white elephants, especially the Bridge to Nowhere. Strange how much the government cares about construction workers' interests when they coincide with the property developers'. Labour is often imported to get big projects completed anyway. Instead of West Kowloon CC and the cruise terminal, let's have some simple parks with lots of grass and trees.
2
Our Dear Leader Tsang wants to hire 7,700 civil servants this year. Don't bother - we already have too many. Try firing some instead, and making the rest pay into MPF accounts. Currently they get generous inflation-proof pensions at public expensive.
3
Share the tax burden more equitably. Only one-third of salary earners pays any tax (from today's SCMP). It's a similar situation with companies. Can they really not afford to pay just a little?
4
Reform the provision of healthcare. David Webb had some good ideas, though they're politically unlikely. Perhaps people could pay full cost up to a maximum of $10,000 a year, on a means-tested basis.
5
Giving handouts like 3 months' free rent to government housing tenants and electricity subsidies is a waste of money. The people to whom these measures make a difference are far more likely to invest than spend any extra cash they get. It's politics, plain and simple.
6
Although a GST is regressive, I still think it's preferable to a high land price policy in which not only consumption but every other form of economic activity is effectively taxed by both government and big corporations. The present policy also gives far too much political and economic power to a small group of very rich and very powerful people. Again, complaints from people who don't understand the issues (and probably haven't had the issues explained to them) prevent a GST from becoming a reality.
So, expand the tax base, cut spending and, if you're going to have a fiscal stimulus, do it in the form of a tax rebate. Various interest groups will prevent any of this from happening. Anyway, just my thoughts...