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The huge increase in government spending in the last government has a great impact on the distribution of consumer coupons. Xu Zhengyu: It is not appropriate to adjust the profits tax at this time

2022-07-13T09:20:13.245Z


In recent years, the anti-epidemic expenditure has increased significantly, and the government's financial situation has attracted attention. Liberal Party Legislative Council member Shau Ka-fai asked the Secretary for Financial Services and the Treasury, Mr Hui Zhengyu, about the financial situation of the fifth-term government. Xu Zhengyu said that health, economy and


In recent years, the anti-epidemic expenditure has increased significantly, and the government's financial situation has attracted attention.

Liberal Party Legislative Council member Shau Ka-fai asked the Secretary for Financial Services and the Treasury, Mr Hui Zhengyu, about the financial situation of the fifth-term government.

Xu Zhengyu said that health, economic and social welfare have increased significantly, but he believes that it is not appropriate to adjust the profit tax rate for the time being.


Health spending hits $162.8 billion, economic spending soars to $106.7 billion

Siu Ka-fai asked about the projects that have greatly increased government spending in the fifth term, and whether he has assessed whether the increase in spending will impose a heavy burden on the government's finances.

Xu Zhengyu responded that the fifth government, the Lam Cheng Yuet-ngor government, has three major projects that have increased spending significantly compared to the previous one, namely health, economic and social welfare.

Health spending will increase from $71.1 billion in 2017-18 to $162.8 billion in 2022-23, economic spending will increase from $16.4 billion to $106.7 billion, and social welfare spending will increase from $70.3 billion to $120 billion.

Expenditures mainly deal with population growth, distribution of consumer coupons, improvement of welfare

The increase in health expenditure is mainly adjusted for population growth and demographic structure, such as the enhancement of services by the Hospital Authority and the increase in expenditure on medical care for the elderly.

In addition, there are additional funds to promote primary care, such as the establishment of district health centres.

The major increase in economic expenditure is the distribution of consumer vouchers for two consecutive years, and the increase in social welfare expenditure is due to the improvement of welfare in various areas, such as elderly services and child care.

Xu Zhengyu said that the government believes that it is still inappropriate to adjust the profit tax rate for the time being.

(Photo by Zhang Haowei)

No new spending cuts

Xu Zhengyu said that the government has always adhered to the public financial management principles of prudent financial management, living within its means, and "as required", and the government has emphasized that expenditures must enter a period of consolidation, and launched a cost-saving plan in 2022-23, without affecting people's livelihood expenses. Under the cut, the sectoral regular allocation is cut by one percent.

As the cost-saving plan is a long-term implementation, no new expenditure-cutting plan will be launched this year. At the same time, new items involving recurrent expenditure will be carefully considered and the increase in civil service will be strictly controlled.

In terms of open source, the government adjusted the stock stamp tax rate in August last year. It is estimated that the annual income will increase by about 12 billion yuan. By 2024-25, a progressive rate system will be introduced for residential properties.

In view of the economic environment and the impact of the epidemic, enterprises and citizens are generally still facing considerable financial pressure. The government believes that it is still inappropriate to adjust the profits tax rate for the time being.

The Legislative Council passed the suspension of the implementation of the "Rules of Procedure". Members were able to take a "summer vacation". The committee was extremely concerned about the overestimated construction costs of the road administration. Crab: Hope to learn a lesson

Source: hk1

All news articles on 2022-07-13

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