Hong Kong E-News - Budget Speech 28 February 2018

Budget to diversify the economy, invest for the future and enhance liveability of Hong Kong

Hong Kong's Financial Secretary, Mr Paul Chan, presented his 2018-2019 Budget to the Legislative Council on Wednesday 28 February 2018.

He announced that there is a fiscal surplus of HK$138.0 billion (EUR 14.62 billion), the fiscal reserves are expected to reach HK$1,092 billion (EUR 115.68 billion) by 31 March 2018.   Part of the surplus (about 40%) will be shared with the community through one-off concessionary measures, tax breaks and tax rebates and the remaining will be used for improving services and investing for the future.  It is estimated that the 2018-19 Budget would have a stimulus effect of 2.0% on the growth of GDP.

Mr Chan pledged to proactively promote economic development by providing favourable conditions for emerging industries such as innovation and technology (I&T) and identifying growth opportunities on the one hand, and strengthening the competitiveness of the pillar industries.  He also committed to improving existing services and quality of life, meeting the community's long-term needs for healthcare and elderly care, enhancing support for the disadvantaged and enabling members of the public to enjoy the fruits of the economic success of Hong Kong.

Economic Performance in 2017

Economic Outlook for 2018

Taxation

Diversify the Economy

Mr Chan said Hong Kong needs to keep abreast of and ride on three major trends of the global economic landscape: the development of I&T that has revolutionised the traditional and capital intensive business model based on tangible assets, the shift in global economic gravity from West to East, and the rise of protectionism in some advanced economies.  In response to the three major trends, Mr Chan announced a broad range of measures to diversify Hong Kong's economy.

I&T

Financial Services

Trading and Logistics Industry

Tourism

Business and Professional Services  / SMEs

Construction Industry

Creative Industries

Invest for the Future and Enhance liveability


Full details of the 2018-2019 Budget here.