The fifth wave of the outbreak in Hong Kong has reached an out-of-control situation.
At the most severe moment of the epidemic, the Financial Secretary, Paul Chan, released the last "Budget" of the current government today (23rd). He has previously announced that the cover of this budget will be brown and muddy, and pointed out that it reflects his Thoughts when preparing the budget: "The beauty of soil is not pleasing to the eye, but it is rich in nutrients that can make the sapling grow vigorously; no matter how strong the trunk is, it must have a deep and steady root, so as to not be afraid of wind and rain, and the branches will flourish."
He predicted This Budget will actively respond to challenges and fight against the epidemic with all-out efforts. We will try our best to help the citizens and small and medium-sized enterprises, so as to stabilize public confidence. At the same time, we will also deploy medium- and long-term economic development and ensure economic and financial security.
It is understood that this budget will introduce a reform of the rates system, with self-occupied properties "receiving less", and large landlords who collect rents "charging more".
The government will distribute electronic consumer vouchers totaling 10,000 yuan in two installments, with the first installment available as soon as April.
The epidemic is severe and the city is frozen, Chen Maobo published the last "Budget" of the current government
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[11:30] A new round of consumer coupons will be launched, and 10,000 yuan consumer coupons will be issued to eligible citizens aged 18 or above.
[11:25] Chen Maobo pointed out that measures to support enterprises will be introduced.
include:
- The 2021/22 annual profits tax will be reduced by 100%, capped at 10,000 yuan, benefiting 151,000 enterprises in Hong Kong.
- Non-residential rates, capped at RMB 5,000 per quarter per household, and RMB 2,000 for the next two quarters, minus RMB 3.4 billion in income
Business registration fee, benefiting 1.5 million operators and reducing revenue by 3 billion yuan
Non-residential users, 75% of water and sewage charges, capped at 20,000 and 12,500, 8 months to the end of November this year, income decreased by 680 million yuan
From October, 34 types of government fees will be extended, and government fees will be reduced, such as aviation, fishery, agriculture, construction, entertainment, etc., government revenue will be reduced by 1.7 billion yuan
The concession applies to eligible tenants of government premises, 75% of the rent for a period of 6 months. By the end of September, tenants who want to close the premises can continue to receive full rent concessions and reduce their income by 1.4 billion yuan
The financing application period for small and medium-sized enterprises will be extended by one year until June next year, with 100% guarantee.
[11:15] He pointed out that a number of relief measures will be introduced to reduce salaries tax and personal assessment in 2021/22 by 100%, with a ceiling of 10,000 yuan, which will benefit 2.1 million taxpayers in Hong Kong, and the treasury income A decrease of 13.1 billion yuan.
The 2022/23 property rates will also be reduced, capped at $1,500 for the first two quarters and $1,000 for the next two quarters, involving $11.7 billion, benefiting 2.99 million residential properties.
The government will also provide a subsidy of 1,000 yuan to each eligible electricity household, involving 2.8 billion and benefiting 2.8 million households.
A subsidy equivalent to half a month's subsidy will also be paid to CSSA recipients.
Similar arrangements will be made for the Working Family Allowance.
The threshold of transportation allowance has been reduced from 400 yuan to 200 yuan from May to October this year, providing up to one-third of the subsidy, with a monthly ceiling of 500 yuan.
The government has also newly established a tax deduction for residential rental expenses in the year of assessment 2022/23 to reduce the burden of renting, with a deduction of $100,000 for each year of assessment, which is expected to reduce revenue by $3.3 billion.
100% guarantee of personal preferential loan amount, the application period is extended by one year to the end of April next year, the maximum is increased from 6 times to 9 times the average income during the employment period, the upper limit is increased from 80,000 to 100,000, and the longest repayment period is extended from 6 years to 10 years , 12 months to 18 months
To support online learning, the Excellent Education Fund, the three-year plan, to subsidize schools to buy mobile computer devices and wireless network equipment, to help the grassroots continue to study during the epidemic.
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[11:05] He pointed out that the budget has a total commitment of 170 billion yuan in related expenditures, together with infrastructure and other expenditures, providing about a 3% boost to the economy.
He recalled that in 2021, the society's promotion of vaccination, coupled with policy support, the global economy will recover significantly, the IMF estimates a strong rebound of 5.9%, and Hong Kong's overall export of goods will be strong, with a sharp increase of 10.9%.
Hong Kong's overall economy will grow by 6.4% in 2021, reversing the decline of the past two years. The unemployment rate has dropped from 7.2% to the recent 3.9% at the beginning of last year. Import prices have accelerated. , Affected by the global variant of the new crown virus, the local stock market has adjusted significantly and increased by 3% in the whole year, while the non-residential property market has seen a significant increase in transactions after the double stamp duty has been revoked, but the price/rent of office buildings is soft, and the price of industrial buildings/ Rents have picked up significantly.
He pointed out that the government will continue to increase land supply and pay attention to the property market.
He also predicted that, affected by the omicron variant virus, the global economic recovery has slowed down, global inflation has risen significantly, many central banks have tightened monetary policies, and the geopolitical situation has been complicated and volatile, bringing uncertainty to the economic outlook, and lowered the economic growth forecast. to 4.4%.
He mentioned that the mainland has effectively controlled the epidemic. Last year, the mainland's economy grew by 1.1%. Despite the downward pressure, the mainland's economy is basically solid, which will support the steady growth of the mainland's economy and become the main engine of global economic growth.
The U.S. rebounded significantly last year, and the market forecasts further growth this year. In response to inflation, the Federal Reserve expects to respond to inflation and may raise interest rates several times. Fiscal support will decrease, which may affect the momentum of economic growth. The slowdown of the euro will benefit from loose monetary policy. This year will continue to recover.
He pointed out that the fifth wave of the local epidemic has deteriorated sharply, consumption has been severely hit, and life is under great pressure. In the short term, under heavy pressure, consumption and underemployment have deteriorated, and the economic performance in the first quarter is not optimistic.
If the epidemic is under control, the dynamic clearing will continue to be maintained in the future, and the conditions for orderly customs clearance in the mainland will create economic momentum. Coupled with the boosting effect of the budget, the second half of the year will perform well, and the real growth rate for the whole year is forecast to be 2-3.5%. .
Chen Maobo expects that the local cost pressure will further increase with the economic recovery. On the other hand, the upward pressure on residential rents will be slight. The overall inflation rate and the basic inflation rate are predicted to be 2.1% and 2% respectively this year. Although inflation is moderate, many daily necessities rely on imports. Pay attention to the impact on the public.
He also pointed out that under the 14th Five-Year Plan and the support of the central government, it will help Hong Kong's economic growth in the future and push the economy to a new level. 2.5% on average.
[11:00] Chen Maobo began to read out the budget. He pointed out that the epidemic was brought under control last year, and people's lives gradually recovered. However, in the past month or so, the rapid reversal and the rapid spread of the virus have dealt a heavy blow to the work and life of many citizens and small and medium-sized enterprises. Everyone's confidence in the future is filled with anxiety and pessimism. Quickly controlling the epidemic is also the key to stabilizing confidence and the economy. The central support makes the government more fighting spirit, fighting the epidemic at full speed, mobilizing all resources and taking all necessary measures. To fight the epidemic with all-out efforts, the budget alone has surpassed 54 billion yuan in resources, and we will increase relief efforts. The public expects that the budget will focus on four aspects:
1. Fight against the epidemic with all-out efforts
2. Relief for citizens and SMEs
3 to provide support for the downward economy,
4Investing in the future promotes medium and long-term development after the epidemic
[10:50] According to the news, the government will distribute electronic consumer coupons in two phases, 5,000 yuan each time, a total of 10,000 yuan.
The first issue will be released in April.
▼Cover colors of 5 budgets during Chen Maobo's tenure▼
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Budget ︱ Deconstructing the two major causes of consumer coupons "good things are near" Scholars predict that the warehouse can still "hold up" Budget 2022 | "Spicy tricks" do not need to withdraw rates to reform the budget │ Cover color exposure Chen Maobo: Just water Hong Kong carefully A better future budget ︱ The local epidemic is severe, Chen Maobo changed his first budget after his return with a video speech speech