Hong Kong’s Paul Chan calls for more prudent management of public finances

Finance chief says local economy is undergoing structural adjustment as he launches public consultation for next year’s budget

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A screengrab from a promotional video finance chief Paul Chan released on Sunday announcing the public consultation for the next budget. Photo: SCMP

Published: 5:25pm, 15 Dec 2024Updated: 8:07pm, 15 Dec 2024

Hong Kong’s financial secretary has stressed the need for more prudent management of public finances, noting the city’s economy is undergoing “structural adjustment” amid an uncertain global outlook, as he invited suggestions for his next budget.

But Paul Chan Mo-po also said the market sentiment had improved near the end of the year after Beijing rolled out favourable measures aimed at stabilising the city’s economy and boosting business.

In a blog post on Sunday, Chan announced that public consultation for the budget for 2025-26 was under way and that he hoped to better understand the residents’ views so as to build consensus on the direction of the blueprint.

“Faced with the continued uncertainty of the external environment, the complex and fluid global political and economic situation, as well as the fact that Hong Kong’s economy is undergoing structural adjustment, we must manage our public finances more prudently,” he wrote.

The minister is expected to present his blueprint on February 26 next year.

Earlier this month, Chan doubled his estimate for the current financial year deficit to about HK$100 billion (US$12.86 billion), up from his original forecast in February of about HK$48 billion. The government has largely attributed the increase to the property market slump, which has reduced land sales and premiums.