Budget｜Chen Maobo: Fiscal policy tightening is inevitable but relief measures may not be withdrawn across the board

Financial Secretary Chen Maobo, who is consulting on next year's budget, pointed out that as society enters the post-epidemic stage, the mainland and Hong Kong are gradually and orderly clearing customs, and it is expected that this year's economy will definitely be better than last year; coupled with the huge deficit and large reserves He admitted that it is inevitable to tighten fiscal policy, but emphasized that relief measures will not be canceled across the board.

Chen Maobo posted on his blog today (29th) that the biggest challenge in preparing the next year's budget is facing a huge fiscal deficit. "Reducing expenditure is a must, and increasing revenue is more important."

He also pointed out that the government's financial reserves have fallen to the level of 800 billion, which is equivalent to 12 months of government expenditure. The fiscal policy for next year will transition from a "very loose" expansionary stance to a "moderately loose" one.

He admitted frankly that some relief measures that have been introduced for many years may need to be adjusted, but he promised to reduce the impact on vulnerable groups as much as possible. However, he hopes that the public will understand and consider the expenditure that must be reduced and the additional tax burden that may have to be shared. and support.

Chen Maobo pointed out that this year's economy will improve compared with last year, but it is still necessary to closely observe the speed and strength of the economic recovery after the epidemic, especially at the beginning of the economic recovery, the market confidence is relatively weak, and if fiscal expenditures are tightened sharply at this time, it may not be conducive to the consolidation recovery momentum.

In addition, the operating environment of different industries and the income recovery of wage earners of different classes may lag behind, and there may be a gap in the "body temperature" of citizens' economic recovery.

Taking these factors into account, it may not be appropriate to eliminate all relief measures across the board, even in the face of enormous pressure to reduce public expenditure.

However, he stated that during the transition of fiscal policy from a "very loose" expansionary stance to a "moderately loose" fiscal policy, it is necessary to focus on supporting the disadvantaged and enhance economic momentum to further enhance the public's confidence in economic improvement, but at the same time Efforts should also be made to control public expenditures to maintain market confidence in the government's financial stability.

Reserve level falls to equivalent to 12 months of government spending

He explained that the continuous expansionary fiscal policies in the past few years have caused fiscal reserves to drop sharply to the level of 800 billion, which is equivalent to about 12 months of government expenditure, which is much lower than three years ago, which was equivalent to more than 20 months. level of expenditure.

In the face of economic and market pressure, the government has taken extraordinary measures to stabilize people's livelihood in extraordinary times.

Chen Maobo emphasized that as the economy stabilizes, fiscal measures must be adjusted accordingly. This is a responsible approach and is also in line with the principles set forth in Article 107 of the Basic Law.

Sustainability of public finances is one of the basic elements for Hong Kong's social and economic stability and prosperity.

As a small and fully open economy, Hong Kong needs sufficient financial strength to resist the risks brought about by external changes.

Chen Maobo: Purely reducing expenses will not help increase income

However, he believes that purely reducing expenditure will not help to increase future income. The two goals must be pushed forward at full speed in order to maintain fiscal sustainability while creating a vigorous economic development.

He said: "Development is the last word. Only when the economy develops well can we have the financial resources to respond to various demands of the society and the people's livelihood."

Chen Maobo pointed out that the strategy of the authorities is a better combination of "promising government" and "efficient market". From investing heavily in innovation and technology in the past few years, to attracting enterprises and recruiting talents now, it is also hoped to enhance economic momentum and allow innovation and technology The application assists the upgrading and transformation of traditional industries, and enables innovative technologies to promote the growth of emerging industries.

He described that this is the key to whether the economy can maintain its advantages and vitality, and it is also the key to ensuring the long-term prosperity and stable development of Hong Kong.

Let the economy develop more vigorously and diversified, the industries richer, and the economic structure not too concentrated, so as to create more high-quality employment opportunities. This is related to the economy and people's livelihood.

This is another main thread of the Budget.

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Chen Maobo: In the post-epidemic period, investment is required in the future. The fiscal policy will be adjusted to loose consumer coupons in the middle｜Chen Maobo pointed out that the policy of "watching food and eating meals" needs to be adjusted: it may not be possible to vigorously develop consumer coupons︱Chen Maobo said that it is undecided: large expenses must be carefully adopted and listened to Opinions include how to send