Paul Chan: Hong Kong's fiscal deficit for the last financial year has been revised down to HK$80.3 billion. We will carefully consider increasing revenue from border infrastructure fees.

The Legislative Council continued to review the Appropriation Bill for the new financial budget today. Hong Kong Financial Secretary Paul Chan Mo-po revised the deficit for the previous year from HK$87.2 billion to around HK$80.3 billion, mainly due to an increase in stock stamp duty and lower than expected departmental expenditure. He emphasized the importance of looking at the government's finances in the context of the overall cycle, rather than focusing on just one fiscal year. He also mentioned that he will carefully consider the public's views on increasing border infrastructure fees before making a decision. The budget proposes an increase in the departure tax for airplane passengers, which has sparked controversy. Paul Chan Mo-po stated that the impact of this proposal on overall travel expenses for passengers is minimal. He compared the prices of short-haul flights departing from Hong Kong International Airport to those departing from Shenzhen and Guangzhou airports, noting that while some flights from Hong Kong may have slightly higher prices, they are still popular among many Hong Kong and mainland Chinese travelers. He believes that the tax increase will not undermine the competitiveness of Hong Kong's airport. After proposing the border infrastructure fee in the budget, Paul Chan Mo-po noted that many legislators have expressed concerns and opinions on this matter, especially for those who commute frequently between the two places. Therefore, he will make a decision after careful consideration. Paul Chan Mo-po emphasized that the Hong Kong government's primary goal is to take care of the well-being of its citizens. During times of economic downturn, the government will implement an expansionary fiscal policy in a resolute and decisive manner. Although the measures have produced the expected results, the government has incurred deficits due to the "ebb and flow" of finances. He expressed confidence and determination that the government's comprehensive account will return to surplus starting from the 2028/29 fiscal year, maintaining the soundness of public finances. He mentioned the impact of the equivalent tariffs announced by the United States in early April on the global financial market, which caused significant fluctuations in the Hong Kong stock market. Despite this, trading remains smooth and orderly, and the currency market continues to operate normally, with the Hong Kong dollar maintaining stability under the linked exchange rate. Facing the bullying behavior of the US in the tariff war, Paul Chan Mo-po emphasized the need for Hong Kong to understand the new landscape and order of international trade and maintain its status as a tariff-free port to ensure freedom of movement. He described the future as uncertain, but Hong Kong's unique advantage of "one country, two systems" can seize opportunities and attract more trade and business activities to promote high-quality development amidst the changing situation. He noted that since the budget announcement to raise the cap on property values subject to a stamp duty of HK$100 to HK$4 million, there has been a slight improvement in the property market sentiment and increased activity. However, the drastic changes in the external environment will continue to impact the property market sentiment in the short term. Regarding basketball betting taxes, Paul Chan Mo-po emphasized that the Hong Kong government's policy is not to encourage gambling but to address the problems caused by gambling through various measures, including regulating basketball betting activities. Due to the worsening trend of illegal basketball gambling in Hong Kong, law enforcement alone cannot solve the problem. He clarified that the government's efforts are not aimed at increasing revenue, and the regulation of Hong Kong Jockey Club betting activities will not be approached from a commercial perspective.