Hong Kong fiscal deficit exceeds 90 billion! ACCA Hong Kong Chapter proposes 20 recommendations to streamline the budget.

The Association of Chartered Certified Accountants (ACCA) Hong Kong Division has put forward 20 recommendations on the 2025/26 Financial Budget, and predicts a fiscal deficit of HK$92 billion for the 2024/25 fiscal year. The Hong Kong Division states that the 20 recommendations cover three main areas: revenue generation, expenditure reduction, and livelihood improvement, with the aim of helping the Hong Kong government balance public policy development, meet the needs of livelihood, and drive economic growth to achieve sustained recovery and enhance competitiveness. In terms of revenue generation, there are 9 recommendations, including suggesting the Hong Kong government make more effective use of assets, such as commercializing excess government properties and selling government fixed assets; and proposing to expand the scope of sports betting to include basketball. At the same time, 6 expenditure reduction recommendations are proposed, such as suggesting adopting the practice of the United States to establish an "Government Efficiency Department" to review the operation of government departments and reduce unnecessary expenditures; consider changing the current flat subsidy method for the "HK$2 MTR Ride Discount" and "Public Transport Fare Subsidy Scheme" to a tiered subsidy system based on ticket prices. In terms of improving livelihood welfare, there are 5 recommendations, such as proposing that the Hong Kong government provide a tax reduction of up to HK$10,000 for families hiring foreign domestic workers; to increase the birth rate, in addition to cash allowances, suggest amending the law to extend statutory paternity leave and maternity leave, currently set at 5 days and 14 weeks, employers can apply for maternity leave salary compensation for weeks 11 to 14 from the government, with a maximum of HK$80,000 per employee. The President of the Hong Kong Division, Kenneth Ho, stated that in the face of fiscal deficit challenges and rapidly changing international situations, the Hong Kong government needs to take a comprehensive view of public finances and adopt innovative strategies to consolidate Hong Kong's stable and sustainable economic development.