Written by: Chen Jiahui
2020-02-27 07:00Last updated: 2020-02-27 07:00
The new "Budget" will be released on the 26th. Under the multiple blows of external factors, local social events, and the pneumonia epidemic, the government's revenue has decreased, and heavy-weight relief measures have been introduced, including 10,000 for the whole people and a full tax refund. The budgets for 2019/20 and 2020/21 will see deficits. Next year The deficit recorded a record high of 139.1 billion yuan.
In fact, the fiscal deficit only reflects the government's revenue and expenditure for one year, which will affect the government's fiscal reserve balance, but it does not mean that the treasury is exhausted. In 2020/21, the Hong Kong Government's fiscal reserves will be 994 billion yuan, and this reserve will be deposited in the 4 trillion yuan foreign exchange fund, which is the total assets of the Hong Kong government.
▼ "Budget 2020" measures ▼
Under the haze of the pneumonia epidemic, the Financial Secretary Chen Maobo surrendered his first deficit budget in 15 years. Chen Maobo pointed out that due to the impact of Sino-US trade inspections and local social events, coupled with the launch of multiple rounds of relief measures and the establishment of an epidemic prevention and anti-epidemic fund, the fiscal deficit in 2019/20 was 37.8 billion yuan, equivalent to about 1.3 GDP %.
Next year's deficit of 139.1 billion breaks 3% red line
In 2020/21, the budget expects that government revenue will decrease due to the impact of the external economy and the epidemic. In addition, large-scale counter-cyclical measures such as the distribution of 10,000 yuan and tax exemption to permanent residents aged 18 and over in Hong Kong will be in deficit next year. As much as 139.1 billion yuan, equivalent to about 4.8% of GDP, also broke through the international standard of deficits of 3% of GDP, further breaking the financial thinking of spending within the past.
Chen Maobo explained that although the deficit next year will be the highest in years, most of it will be related to money distribution and one-time relief measures, which will not constitute a long-term financial burden. However, Chen Maobo also warned that if special relief measures and increased spending continue to lead to fiscal deficits, the reserves will eventually run out, suggesting that no more money will be distributed in the next few years.
Fiscal Reserves of $ 940 billion for about 16 months of government expenditure
In fact, fiscal deficit or surplus, that is, the difference between government revenue and government expenditure in a fiscal year, only reflects the government's revenue and expenditure in that year; a deficit recorded in a fiscal year will affect the government fiscal reserve balance, but Does not mean that the warehouse is exhausted. This year ’s budget is “hit”, so the government ’s fiscal reserves have decreased by 139 billion yuan from 1,133 billion yuan in 2018/19 to 994 billion yuan in 2019/20, which is equivalent to 16 months of government expenditure.
﹙01 News Drawing﹚
Specifically, the government ’s nearly trillion trillion fiscal reserves include nine parts, including the general revenue account of the government, and eight designated funds, which are the Capital Works Reserve Fund and the Land Fund (the main part of the future fund). , Civil Service Pension Reserve Fund, Lotteries Fund, Innovation and Technology Fund, Basic Investment Fund, Loan Fund and Disaster Relief Fund.
Full government ownership: 4 trillion foreign exchange fund
The government further deposits financial reserves and other assets in the Exchange Fund, which is managed and invested by the HKMA to earn a return of "money and money." As of the end of 2018, the total assets of the Exchange Fund reached HK $ 4 trillion, which is the total assets of the Hong Kong Government.
﹚ MAS website picture 网站
The Exchange Fund can be roughly divided into three parts, namely the monetary base: 1.7 trillion yuan, accounting for about 42% of the total assets of the Exchange Fund; fiscal reserves and government and statutory organization deposits; including related liabilities, 1.7 trillion yuan, The ratio is about 43%, and the fund ’s accumulated surplus and revaluation reserve is 610.3 billion yuan, accounting for about 15%.
Although the monetary foundation and funds with special purposes in the Exchange Fund cannot be used at will, there should be a direct voice in society calling for some of the surplus to be used as public expenditure to solve long-term livelihood problems.
Transfer of financial skills: Zeng Junhua saves money, Chen Maobo avoids deficits
Can funds be transferred between funds and reserves? In last year's "Budget", Chen Maobo once transferred the 82.4 billion yuan of housing reserves, which were independent of the fiscal reserves and deposited in the Exchange Fund, back to the general income account in four years to ensure a budget surplus in the next few years. . He explained at that time that the forecast balance of the Housing Authority in the next few years would exceed 40 billion yuan, and no reserve fund was needed. At the same time, there were opinions in the society that the housing reserve fund was independent of the fiscal reserve and could not fully reflect the government's financial situation Therefore, it is transferred back to fiscal reserves.
This housing reserve is actually the result of the transfer of funds by the previous rich man, Zeng Junhua. In 2014, Zeng Junhua used the investment income of the government fiscal reserves in the Exchange Fund to establish a housing reserve fund to support the development of public housing and related infrastructure, which in turn reduced the government's dividend for the year and reduced the general income account balance.
▼ 30 billion measures for epidemic prevention and anti-epidemic funds ▼
In addition, in the first two Budgets, Chen Maobo transferred different parts of the fiscal reserves to each other. In the years 2018/19 and 2019/20, the rich man transferred the capital works reserve fund to the general revenue account of the government to avoid a deficit in the latter.
2020 Budget Budget Budget Financial Reserves 01 Data