(Adds measures, estimates)
HONG KONG, Feb 22 (Reuters) - Hong Kong's Financial
Secretary Paul Chan presented budget proposals for the fiscal
year starting in April 2023 on Wednesday, highlighting support
measures for businesses and residents to speed up the city's
economic recovery.
KEY FIGURES
* Says 2022 GDP contracted 3.5%
* Forecasts 2023 GDP growth between 3.5% and 5.5%
* Projects 2023 headline inflation at 2.5%
* Estimates 2023 underlying inflation at 2.9%
* Q4 GDP at -4.2% year-on-year
* Q4 GDP flat quarter-on-quarter
* Forecasts average growth rate 3.7% per annum in real terms
from 2024-2027
* "Hong Kong's economy will visibly recover this year, and I
remain positive."
MEASURES:
* Will give out HK$5,000 in consumption vouchers to residents
aged 18 and older
* To reduce salaries tax payable by 100%, capped at HK$6,000
* To support enterprises, will reduce profit tax by 100%, capped
at HK$6,000
SPECIFIC INDUSTRIES:
* To conduct a feasibility study on the development of an
Artificial Intelligence Supercomputing Centre
* To launch a Digital Transformation Support Pilot Programme
* To establish a task force on virtual assets development
* To introduce a mechanism attracting overseas companies to
re-domicile in Hong Kong
* Says to propose initiatives to attract outside talents while
nurturing local talents with a view to contributing to economic
development
* Says to introduce a new Capital Investment Entrant Scheme to
attract talent and capital
* Hong Kong, as an offshore RMB hub, will continue to take the
lead in RMB fund management and investment in the international
market
* Says HKEX will put forward specific reform recommendations on
GEM (growth enterprise market) to cater for the financing needs
of SMEs and start-ups
* Says the Airport Authority Hong Kong is rolling out measures,
including reducing or waiving airport charges, providing
incentives to resume suspended flight services or launch new
routes
* Says seeking to enter into free trade and investment
agreements with emerging economies as priority is to inject new
impetus into Hong Kong's trade development
* To issue up to HK$50 billion of silver bonds
* Says to issue HK$15 billion of green retail bonds
PROPERTY MARKET
* Says 2023-24 Land Sale Programme will cover 12 residential
sites, providing about 20,550 units
* Says 2023-24 Land Sale Programme will also include 3
commercial sites and 3 industrial sites, capable of providing
about 200,000 square metres of commercial floor area and 170,000
square metres of industrial floor area, respectively
* Says completion of private residential units will average over
19,000 units annually in the five years from this year onwards
* Says will maintain cooling measures on property market
* Says will adjust "value bands" on stamp duty for first-time
local property buyers
LIVELIHOOD
* Says the Government has set the target of introducing about
700 electric buses and 3,000 electric taxis by end-2027
* Says to commence trials of hydrogen fuel cell electric
double-deck buses and heavy vehicles this year
* Says to increase tobacco duty on cigarettes by 60 cents per
stick with immediate effect and duties on other tobacco products
will be increased by the same proportion
* Says to impose an annual special football betting duty of
HK$2.4 billion on the Hong Kong Jockey Club under the Betting
Duty Ordinance for five years starting from 2023-24
* Says current betting duty rates remain unchanged
GOVERNMENT ESTIMATES
* Estimates a deficit of HK$139.80 billion for 2022-23, higher
than original forecast of about HK$56 billion
* Fiscal reserves will fall to HK$817.3 billion by March 31,
2023
* Revised estimate on government revenue is HK$603.8 billion for
2022-23, down 15.7% from the original estimates, amid lower than
estimated revenues from land premium and stamp duty
* Revised estimate of total government expenditure for 2022-23
at HK$809.6 billion, up 16.8% from previous year
* Says total government expenditure for 2023-24 will decrease by
6% to HK$761.0 billion
* Says total government revenue for 2023-24 is estimated at
HK$642.4 billion
* Forecast a deficit of HK$54.4 billion for 2023-24
* Fiscal reserves will decrease to HK$762.9 billion in 2023-24,
equivalent to 12 months of government expenditure
* Fiscal reserves are estimated at HK$983.7 billion by the end
March 2028, or 14 months of government expenditure
* Says society remains fairly stable and public finances are
robust despite epidemic for over three years
* "However, we have seen two years of heavy fiscal deficits,
while the external environment is still rife with challenges."
(Reporting by Donny Kwok; Editing by Jacqueline Wong)
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