The Hong Kong Legislative Council approved the "Appropriation Bill 2026" on its third reading.

Today (April 29), the Legislative Council of the Hong Kong Special Administrative Region held a meeting and passed the third reading of the "Appropriation Bill 2026." The bill passed with a large majority in an anonymous vote. During his speech, Hong Kong Financial Secretary Paul Chan Mo-po stated that the operating accounts for the previous year had returned to surplus ahead of time, with the comprehensive accounts roughly balanced after taking into account income from debt issuance. Tomorrow, the government will announce the preliminary financial summary for the 2025/26 fiscal year, and it is expected that the comprehensive surplus will increase from HK$29 billion to HK$110 billion. During the second reading debate, Paul Chan Mo-po pointed out that the Hong Kong economy had started the year on a positive note, but the tense international geopolitical situation posed downward risks to the economic outlook. The SAR government is closely monitoring the situation in the Middle East and the potential impact of rising international oil prices. The government has introduced two targeted short-term measures totaling HK$2 billion, including diesel subsidies and a 50% reduction in government tunnel tolls. The government will continue to conduct dynamic evaluations and adjust the measures as necessary based on actual circumstances and needs. Paul Chan Mo-po emphasized that investing in the Northern Metropolis Development is essential for creating capacity for Hong Kong's future. He stated that failing to promote economic diversification and provide better job opportunities for the next generation would be irresponsible. He explained that without investment in the Northern Metropolis and the promotion of innovation and technology development through the introduction of enterprises, the diversification of the Hong Kong economy, the next generation will not have better job options, which he described as irresponsible. To accelerate the progress of the Northern Metropolis and other economically-related projects, the Hong Kong government has proposed to increase the total borrowing limit for the Infrastructure Bond Program and Government Sustainable Bond Program to HK$900 billion. Over the next 5 years, the government will issue approximately HK$160 billion to HK$220 billion in bonds each year, with half of the funds used to refinance short-term bonds issued in recent years. Paul Chan Mo-po clarified that this is not a "robbing Peter to pay Paul" situation, but rather a strategy based on lower interest expenses for short-term bonds and the government's ability to issue long-term bonds. It is projected that the ratio of government debt to GDP will rise from 14.4% to approximately 19.9% in five years, which is still considered a very stable level when compared to most advanced economies. Paul Chan Mo-po noted that the SAR government's finances are very open and transparent, with no intention to conceal any government income or expenditure. He explained that the annual "Budget" announcement is prepared using cash accounting, where income is cash inflow and expenditure is cash outflow. This practice has been in place for a long time and is also used in many economies globally, allowing for a better understanding of the government's available funds.