Hong Kong

Latest data have revealed that Hong Kong's government recorded a budget deficit of HKD10.8bn (US$1.38bn) in June, taking the deficit for the first quarter of FY2008/09 (April-March) to HKD16.5bn. Spending for the first quarter was HKD59.7bn, compared with revenues of HKD43.2bn. The deficit was attributed to the fact that some major revenue items - including salaries and profits taxes - were mostly received towards the end of the financial year. Hong Kong recorded an impressive HKD115.6bn fiscal surplus in FY2007/08, but is pursuing an expansionary fiscal policy this year to help boost sagging economic activity, and is targeting a deficit of HKD7.5bn in the Consolidated Account in FY2008/09.

To read the full article, please choose one of the following options: