In a significant announcement, Hong Kong’s financial chief has reported that the city is poised to achieve an early surplus in its operating account. This positive development is attributed to robust performance in the financial markets and a notable increase in revenue from stock trading stamp duties. During his address at the first public forum regarding the upcoming budget, he responded to growing calls for enhanced support for the elderly.
Financial Secretary Paul Chan Mo-po emphasized on Saturday his commitment to addressing the concerns of senior citizens who are struggling with high living costs. He pointed out that despite facing a budget deficit last year, the government did not cut public spending on social welfare programs.
Speaking to an audience of approximately 100 residents at the forum, which was held to gather public input ahead of the 2026-27 budget set to be revealed in late February, Chan remarked, "Despite the trade conflict and escalating geopolitical tensions that impacted us last year, Hong Kong still managed to achieve an economic growth rate of 3.2%. Our economy is now demonstrating steady and stable growth."
He further explained, "The strong performance of our financial markets led to an increase in stock market stamp duty revenues, allowing us to reach an operating account surplus earlier than projected."
Previously, in his budget statement from last year, Chan had predicted that the government’s operating account would only rebound to a surplus by the 2026-27 fiscal year after experiencing three consecutive years of deficits.
But here's where it gets controversial: As the government grapples with rising living expenses, can it truly meet the needs of the aging population while also maintaining fiscal responsibility? What do you think about the balance between economic growth and social support? Join the conversation below!
