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Hong Kong Budget Summary 2019-2020

Hong Kong Budget Summary 2019-2020

The website includes highlights and KPMG China's commentary on the Hong Kong Budget.

The website includes highlights and KPMG China's commentary on the Hong Kong Budget.

Hong Kong Budget Summary
2019-2020

Commentary

The financial secretary, the Honourable Paul MP Chan, forecasts a healthy surplus of HKD 58.7 billion for 2018-19. Overall, the government expects to have robust fiscal reserves of HKD 1,161.6 billion by 31 March 2019. Looking ahead, the government anticipates maintaining this solid position over the next five years. Hong Kong is fortunate to have a very strong fiscal position which allows the government to continue to invest now and into the future.

As expected, livelihood issues were a main focus, and included tax rebates and targeted welfare measures to return part of the government’s surplus to the people of Hong Kong. Most sectors have benefited in some way from the budget, with the financial services sector and the innovation and technology industry as the biggest winners. That said, education is the single largest area of government expenditure, and should perhaps have received greater attention. In a recent KPMG survey on smart cities, key priorities that respondents identified included strengthening education and developing a future-focused workforce. Ensuring that Hong Kong’s education system is fit for purpose in giving people the right skills for tomorrow should be at the core of every budget.

Building on the last few budgets, the 2019-20 budget supports initiatives for a wide range of issues and sectors. Overall, this budget strikes a fair balance and will likely put money where it is needed in Hong Kong.

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The information contained in the Hong Kong Budget Summary 2019-2020 is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Legislative proposals do not generally become law until their enactment and may be modified by the Legislative Council before enactment.

It should be noted that the information is presented in summary form and readers are advised to seek professional advice before formulating business decisions.