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Friday, Dec 27, 2024
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(Budget 2023-24) Economic growth rate predicted at 3.7pc in five years, with revenue to be HK$642.4b this year
Hong Kong is seeing the medium-range forecast of a real economic growth rate between 3.5 and 5.5 percent during the post-pandemic period, said Financial Secretary Paul Chan Mo-po in his blueprint of the annual budget on Wednesday, adding a 3.7 percent rate per annum forecasted from 2024-25 to 2027-28.
Chan said that fiscal reserves are estimated at HK$983.7 billion by the end of March 2028, representing 25.6 percent of GDP, or equivalent to approximately 14 months of government expenditure.
Returning to the present, for 2023-2024, Chan said the government’s total revenue is predicted to be HK$642.4 billion, with a deficit of HK$54.4 billion. The fiscal reserves will decrease to HK$762.9 billion, equivalent to 12 months of government expenditure.
"Taking into account the above new sources of revenue, the government’s earnings and profits tax for 2023-2024 are estimated to be HK$263.7 billion, increasing by 6.4 percent over the revised estimate for 2022-23," he added.
Total government expenditure for 2023-24 will decrease by 6 percent to HK$761.0 billion, with its ratio to nominal GDP projected to drop to 25 percent.
"However, fiscal reserves will decrease to HK$762.9 billion, equivalent to 12 months of government expenditure," Chan said, "with the deficit estimated to be HK$54.4 billion."
In addition, Chan emphasized that the government will not adjust profits tax and salaries tax under the pandemic and prevailing economic situation, "the momentum of Hong Kong's economic recovery still requires consolidation".
Returning to the present, for 2023-2024, Chan said the government’s total revenue is predicted to be HK$642.4 billion, with a deficit of HK$54.4 billion. The fiscal reserves will decrease to HK$762.9 billion, equivalent to 12 months of government expenditure.
"Taking into account the above new sources of revenue, the government’s earnings and profits tax for 2023-2024 are estimated to be HK$263.7 billion, increasing by 6.4 percent over the revised estimate for 2022-23," he added.
Total government expenditure for 2023-24 will decrease by 6 percent to HK$761.0 billion, with its ratio to nominal GDP projected to drop to 25 percent.
"However, fiscal reserves will decrease to HK$762.9 billion, equivalent to 12 months of government expenditure," Chan said, "with the deficit estimated to be HK$54.4 billion."
In addition, Chan emphasized that the government will not adjust profits tax and salaries tax under the pandemic and prevailing economic situation, "the momentum of Hong Kong's economic recovery still requires consolidation".
