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Written by: Commentary Editing Room
2021-02-07 07:00
Last update date: 2021-02-07 07:00
At the Legislative Council meeting on February 3, the Democratic Alliance for the Betterment of New Territories East Member Chan Hak-qin asked the authorities about government bonds. The Secretary for Financial Services and the Treasury, Hsu Ching-yu,’s answer only followed the usual calibre of past officials, and vaguely claimed that “the establishment of a government bond project” The purpose of this is to promote the further and sustainable development of the local bond market through the systematic issuance of government bonds.” This completely avoids the concerns of members and the society on whether the issuance of public bonds can create jobs, increase wealth and support finances.
Since the implementation of the government bond program in 2009, the SAR government has issued a total of approximately HK$305.9 billion in agency bonds and retail bonds. The funds raised by them will be allocated to the bond fund established under the Public Finance Ordinance and deposited in the Exchange Fund For investment.
The total investment income of bond funds from 2009/2010 to 2019/2020 fiscal year is about 40 billion Hong Kong dollars, which shows that bond issuance has a significant effect on increasing treasury income.
Xu Zhengyu, Secretary for Financial Services and the Treasury.
(Photo by Li Zetong)
The government has plenty of room to issue bonds
Moreover, the amount of government bonds issued in recent years is still far from statutory regulations. In May 2013, the Legislative Council passed a resolution to raise the maximum outstanding principal of the government bond program to HK$200 billion. In the following 93 months, public debt will be owed for half of the time The loan remains below HK$100 billion, while the recent highest value is still only HK$116.5 billion in outstanding bonds.
As long as the authorities intend to issue public bonds, there will be no obstacles regardless of financial pressure or legal framework.
After experiencing the raging social movement and the epidemic in the past two years, Hong Kong’s economy has undoubtedly been in a state of being in a state of distress, and urgently awaits the government’s heavy investment in repairs. However, in such a critical period, a group of principal officials have recently continued to use treasury dry ponds. As an excuse, they refuse to implement measures such as unemployment assistance that can really help the citizens tide over the difficulties, and completely ignore the fact that they have long ago issued government bonds to raise funds.
The bond issuance plan of the 2004 Budget is the "Five Tunnels and One Bridge" bonds, which include the Tsing Ma Bridge and the Lantau Link.
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Just ask if the people cannot live and work in peace, employment and work are precarious, and the distribution of wealth is extremely uneven, what if its public finances are stable?
If all financial officials remember to take care of the people’s well-being, they should stop packaging their lazy miserable behaviors, and should actively consider all possible ways to increase treasury income, including debt issuance, and then use fundraising. To truly serve the society.
Taxing capital is no scourge
Hong Kong citizens also need a sense of security
[Budget] Reform the tax system to create a fair society
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Secretary for Financial Services and the Treasury, Xu Zhengyu, Financial Services and the Treasury Bureau Budget 01 Viewpoint