Budget 2023-24: finance chief maps out plan for Hong Kong’s post-pandemic recovery

Citing ‘intense competition and imminent development needs’, Paul Chan says government must move quickly and decisively to create new engines of growth

Residents will receive another HK$5,000 in consumption vouchers and help with buying first homes, while new taxes target smokers and Jockey Club’s football betting

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In his budget, financial secretary Paul Chan underscored the need to integrate a “capable government” with an “efficient market”. Photo: Elson Li

Published: 8:36pm, 22 Feb 2023Updated: 9:50am, 23 Feb 2023

Hong Kong’s finance chief has mapped out plans for the city’s post-pandemic economic transformation with new engines of growth, while seeking to boost revenue with immediate steps such as raising betting and tobacco taxes and offering a range of relief measures including consumption vouchers and help for first-time homebuyers.

Financial Secretary Paul Chan Mo-po, unveiling his budget on Wednesday, aimed to strike a balance between meeting the immediate needs of residents and businesses hit by three years of Covid-19 restrictions, but also stick to the government’s tradition of fiscal prudence.

Financial Secretary Paul Chan (second left) shows off this year’s budget with other senior officials. Photo: Sam Tsang

As a reminder of the pressing need to replenish government coffers depleted by massive pandemic spending and bailouts, Chan estimated Hong Kong would run a deficit of HK$54.4 billion (US$6.93 billion) in the next financial year.

“Our economy is at the early recovery stage, and members of the public as well as a large number of enterprises are still weighed down by tremendous pressure and require support,” he said.

“Meanwhile, in the face of intense competition and imminent development needs, we have to fully and speedily press ahead with high-quality economic development, which requires forward planning and a front-loaded approach.”

Finance chief Paul Chan plans to lower the stamp duty payable on small and medium-sized flats. Photo: Xiaomei Chen

Chan announced he would lower the stamp duty payable on small and medium-sized flats in a significant boost for first-time buyers.