HONG KONG (Reuters) – The deficit in the current fiscal year is expected to be just under HK$100 billion ($13 billion), the city's chief financial officer said on Saturday.
The government is “focusing on cost-cutting measures” to address the deficit, Paul Chan told residents on a program on public broadcaster RTHK as he was gathering public opinion ahead of the upcoming budget.
“Although we need to move forward with public works projects, we have to prioritize developments according to their urgency,” he said.
Chan said the economy's growth rate in the first three quarters of 2024 was not as strong as expected due to rising interest rates and external challenges.
He wrote in a blog post in December that Hong Kong's economy is expected to grow by 2.5% in 2024. This came after 1.8% growth in the third quarter, which was below expectations.
The estimated deficit for the year ending in March is about double the previous forecast of HK$48.1 billion in the budget presented in February.
Chan attributed the deficit mainly to a sharp decline in land sales revenue. He said boosting the economy amid the fiscal deficit would be Hong Kong's “biggest challenge.”
($1 = 7.7779 Hong Kong dollars)
