Political situation
Written by: Sha Banshan
2021-02-17 06:30
Last update date: 2021-02-17 06:30
The 2021 Budget will be announced on February 24. The new crown pneumonia epidemic is still not over. After a difficult year, the society hopes that the Hong Kong government will "open positions" to relieve the situation.
However, with the record-breaking fiscal deficit and strong opposition from within the government, the traditional "sugar distribution" measures will "shrink" significantly this year.
A senior establishment person with knowledge of the situation revealed to "Hong Kong 01" that according to his understanding, this year's "Budget" tends to be conservative, and there is no hope for money distribution. The traditional "sugar distribution" has to be reduced, and it has been implemented continuously since 2007. The "double pay" such as the CSSA and the fruit grant in 2010 is more likely to "disappear."
Rates waiver and tax rebate "sweet reduction" are basic or even "sweet"
Traditionally, the government "distributed sugar" has three key items, including social security payments "double pay" (covering CSSA, old age allowance, elderly living allowance or disability allowance), rates concessions and tax rebates.
However, these measures are likely to "reduce sweetness" (reduction rate) or even "sweet sugar" (completely abolished) this year.
It is understood that, in addition to the "double pay" social security payment, it is likely to be cancelled, and the benefits of rates, tax rebates and other measures will be changed. The difference lies in the final reduction or complete cancellation. The final decision will be made in the day.
In other words, this budget "sweet reduction" is the starting point, and it does not rule out the complete "sweet removal" (all key measures are cancelled).
A person familiar with the establishment from the business community pointed out that according to his understanding, Chen Maobo did not want to "take sugar," but there was a strong voice among the government’s senior leadership that when the fiscal deficit was severe, the traditional sugar distribution projects should be cancelled and resources allocated to others. local.
For example, the CSSA and the fruit grant are "double pay". Opponents believe that the elderly and CSSA households are not the main victims of this epidemic, because the elderly and CSSA households do not need to face unemployment in theory, so they think they do not. They should be given "double pay" again.
The business person believes that the high-level government’s rationale is not unreasonable. "The CSSA and the double pay should not be normalized. This year, the epidemic will have no impact on the elderly and the fiscal deficit will be severe. What is the point?" The person said that Chen Maobo was born at the grassroots level and has often left the districts in recent years. He has a "more feeling" about the situation at the grassroots level. However, in the face of strong opposition from the government, Chen Maobo could hardly resist the pressure and continue to send sugar as usual.
Looking at the information, the Hong Kong government has provided an extra month of living allowance to the elderly and CSSA recipients in its annual budget since 2007-08. It is commonly known as "double pay" and even "three pay".
If this year’s budget is unsustainable, it will be cancelled for the first time in 14 consecutive years.
▼List of proposals from major parties in the 2021 Budget▼
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In addition to internal government resistance, countercyclical measures also divide resources
The impact of the epidemic has reduced the incomes of many families. Doesn't it require more financial support from the budget?
The source said that with the fiscal deficit breaking a record of 300 billion yuan, and the economic downturn is unknown when it will end, it is inevitable that the budget will "reduce sweetness". On the one hand, Chen Maobo must manage his finances to avoid a serious deterioration in the deficit. Counter-cyclical measures should be taken to stimulate the economy, and more resources should be invested in many large-scale projects to create jobs. With limited resources, "the society should not have too high expectations for this budget."
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