The government is expected to book a HK$38.3 billion budget deficit for the fiscal year 2019-2020, the first budget deficit in 15 years, due to lower than expected revenues from land sales, profit tax and stamp duty, a professional services firm predicts. Expenditure for the fiscal year was estimated to be HK$617.3 billion and revenue HK$572.7 billion, according to the accounting firm PwC. PwC projected HK$1.13 trillion of fiscal reserves by the end of March, equivalent to 22 months of total government expenditure. Choi said coupons to encourage consumption is a better choice to stimulate the conomy than a universal cash handout scheme. Financial Secretary Paul Chan Mo-po recently hinted there will be no cash handouts in his upcoming budget, saying it could lead to a deficit of up to HK$100 billion.

Source: The Standard January 15, 2020 05:55 UTC