Staff Reporter

Hong Kong’s financial chief said on Saturday that the city’s budget deficit for this fiscal year is projected to be just under HK$100 billion (approximately $13 billion).

In a public program on RTHK, Financial Secretary Paul Chan Mo-po emphasized that the government is concentrating on cost-saving measures to address the deficit.

“Our primary focus in cutting expenses is to manage the growth of recurring expenditures,” he stated while engaging with residents for feedback on the upcoming budget.

Hong Kong’s economy has not performed as strongly as anticipated in the first three quarters of 2024, primarily due to high interest rates and external challenges, according to Financial Secretary Paul Chan.

In a blog post published in December, Chan projected that the economy is expected to grow by 2.5% in 2024. This comes after a disappointing growth rate of 1.8% in the third quarter, which fell short of expectations.

Financial Secretary Paul Chan has pointed to a significant decline in land sales revenue as the primary reason for the city’s budget deficit. He noted that boosting the economy while facing a fiscal deficit will be Hong Kong’s “biggest challenge.”

Chan is scheduled to present his next budget speech on February 26.