Xu Zhengyu: Emphasizing the importance of open source and thrift in order to promote the financial recovery and balance of Hong Kong's revenue and expenditure. The draft tax rate is currently under review.

On February 12, the Secretary for Financial Services and the Treasury of Hong Kong, Christopher Hui, spoke on the motion "Comprehensive Review of the Use of Government Resources and Optimization of Fiscal Structure". He stated that the Hong Kong government is implementing a comprehensive financial integration plan to restore fiscal balance within the next few years through controlling expenditure growth, increasing revenue, and issuing government bonds. Hui mentioned that in terms of increasing government revenue, they are considering a global minimum tax rate to address erosion of tax base and profit shifting. The related draft legislation is currently being reviewed by the Legislative Council. It is estimated that these measures will bring in approximately HK$15 billion in additional tax revenue each year starting from the 2027/28 fiscal year. Hui also mentioned that in controlling expenditure growth, the Hong Kong government is strictly controlling operating expenditure growth by continuing the zero growth of civil service establishment and keeping it at March 2021 levels. They are also requiring departments to optimize management and digitization methods. The government is leading by example with the implementation of the "Resource Efficiency Optimization Plan" to save one percent of recurrent expenditure annually from 2024/25 to 2026/27, without affecting comprehensive social assistance and public welfare programs. Given the current economic and financial situation, the government is actively studying ways to further control expenditure growth. In addition to operating expenditure, the government is adjusting the scale of capital works expenditure based on project priorities and urgency. Mature projects like land leveling and infrastructure projects in the northern metropolis area will continue as planned, while projects in the planning or concept stage will be adjusted based on factors like project importance. These measures to control expenditure growth align with the suggestion in the motion to enhance administrative efficiency and save administrative expenses by Member Wong. The motion also proposes increasing government revenue. Four revenue-increasing measures proposed in the "Financial Integration Plan" from last year have all been implemented in this fiscal year, bringing in an estimated total of around HK$3.1 billion annually. When considering revenue-increasing measures, the government will take into account factors such as its financial situation, overall economic environment, and social needs, while maintaining Hong Kong's advantage of a simple and low tax system and competitiveness in attracting businesses internationally. Furthermore, the government suggests imposing a global minimum tax rate proposal on large multinational corporate groups with annual total revenue of EUR 750 million or above. A 15% global minimum tax and a minimum tax supplement in Hong Kong are under consideration by the Legislative Council. It is estimated that these measures will bring in approximately HK$15 billion in additional tax revenue each year starting from the 2027/28 fiscal year. To optimize the government's fiscal structure, the Hong Kong government is using the issuance of government bonds as one of the financing tools for infrastructure projects, utilizing market funds to promote the development of the northern metropolis area and other infrastructure projects. Considering the pace of development in the northern metropolis area and other infrastructure projects, the government announced plans in the 2024/25 Financial Budget to issue government bonds totaling approximately HK$95 billion to HK$135 billion annually from 2024/25 to 2028/29, taking into account public financial conditions, market conditions, and project progress at that time. The government will continue to adhere to fiscal discipline and maintain government borrowing at a prudent level.