Hello and welcome to the details of Hong Kong to rein in spending, push AI growth amid fiscal strain and now with the details
Nevin Al Sukari - Sana'a - Hong Kong’s Finance Secretary Paul Chan delivers the annual budget address at the Legislative Council in Hong Kong, China, February 26, 2025. — Reuters pic
HONG KONG, Feb 26 — Hong Kong will cut public spending and restore fiscal balance by mid-2027 after a string of huge deficits, the city’s finance chief said Wednesday as he unveiled growth plans including an artificial intelligence institute.
Officials are under pressure to balance the books as Hong Kong faces its toughest fiscal test in three decades, with annual deficits exceeding US$20 billion (RM88.6 billion) in three of the past four years.
The city is also being weighed by China’s economic malaise and a looming US-China trade war, following an opening salvo of tariffs from President Donald Trump.
Financial Secretary Paul Chan on Wednesday said the government will contain spending in a way that minimises the impact on public services and livelihoods.
A “cumulative reduction” of government recurrent expenditure by seven per cent through to 2027-28 would take place, he said in his annual budget speech.
“It gives us a clear pathway towards the goal of restoring fiscal balance in the operating account... within the current term of the government,” which ends in June 2027, he added.
Chan’s speech saw no public opposition, as authorities continued to crack down on dissent in the city.
Activists from the League of Social Democrats, one of the last remaining pro-democracy groups, cancelled their annual pre-budget petition citing “strong pressure”.
The group planned to call for pay cuts for top officials, greater government accountability and halting costly infrastructure projects.
Chan also said the government would set aside HK$1 billion ($129 million) to set up a Hong Kong AI Research and Development Institute, in a bid to make the city “an international exchange and co-operation hub for the AI industry”.
The economy is expected to grow between two and three per cent this year, on par with last year’s 2.5 percent.
The International Monetary Fund said last month that Hong Kong was “recovering gradually after a protracted period of shock”.
The city’s benchmark Hang Seng Index reached a three-year high on Wednesday morning, helped by a recent rally in mainland tech companies. — AFP
These were the details of the news Hong Kong to rein in spending, push AI growth amid fiscal strain for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Malay Mail and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
