HONG KONG – The government of the Hong Kong Special Administrative Region will roll out a series of measures to boost revenue in a bid to achieve a balanced budget, Chief Executive John Lee Ka-chiu said on Tuesday.

Lee made the statement after Financial Secretary Paul Chan Mo-po said on Monday that the consolidated budget deficit in the 2024-25 financial year will reach about HK$100 billion ($12.82 billion), which is more than twice the original forecast of HK48.1 billion made in February.

Responding to a reporter’s question ahead of the weekly Executive Council meeting, the chief executive explained that the estimated budget deficit was due to the drop in the revenue of stamp duties and land sales, as well as government efforts to reignite the city’s economy.

In February, the SAR government decided to remove the special stamp duty, buyer’s stamp duty and the new residential stamp duty payable for homebuyers as part of efforts to boost the property market.

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“Last week the multiple-entry Individual Visit Scheme for Shenzhen residents was resumed and the third runway system at the airport also started operation. Next year, the Kai Tak Sport Park will be commissioned. All these will stimulate our economy and increase the government’s revenue,” he pointed out.

Highlighting that Hong Kong had the full backing from the nation, Lee said the SAR government will continue to roll out measures to increase its revenue and find new trade markets, particuarly in the Middle East, Southeast Asia and Central Asia.

Northern Metropolis

Asked about the signing of letters of intent by 85 Hong Kong, Chinese mainland and overseas enterprises for the Northern Metropolis mega development project last Friday, Lee explained that the government had been introducing to enterprises and investors the concept of three big pockets of land for development and the investors will be given more flexibility and freedom to develop them according to their own timetable and overall plan. 

Expressing his confidence in the project, the chief executive emphasized that participants have to look far ahead as the Northern Metropolis may a decade or two to fully develop with many opportunities and major sites like the San Tin Technopole, the Lok Ma Chau Loop, university towns.

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The government would listen to more views when promoting the project so that members of the public could benefit more from the development of the Northern Metropolis, he added.

Panda economy

Regarding the two pandas gifted by the central government, Lee said he noticed that Hong Kong residents were very excited about An An and Ke Ke, who will meet the public on Sunday.

He added that that this was an opportunity to launch different deals and merchandise to promote the panda economy.

With carnivals and related activities, including 2,500 panda sculptures displayed across different locations in the city, Lee said these would drum up more excitement over the weekend.

Public housing at Fanling Golf Course

In response to the High Court’s ruling on Monday that overturned the government's approval of an environmental study into its plan to build public housing units on part of the Fanling Golf Course, Lee said the SAR government will comprehensively consider and analyze the situation before deciding on its next step.

Stressing that the construction of public housing units at the golf course was a decision made by the previous SAR government, Lee said it was preliminarily estimated that changes in this project will not have any major impact on the city’s overall housing supply target over the next decade.

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Meanwhile, the CE will hold an interactive question and answer session at the Legislative Council next Thursday to focus on two topics: Integrated development of technology, education and talent, and creating new growth areas for Hong Kong.