Speaking in an interview with RTHK to mark the 28th anniversary of the SAR’s establishment, as well as his three years in office under Chief Executive John Lee’s administration, Chan said things are looking good for the SAR’s operating account, though spending on projects such as the development of the Northern Metropolis will keep the city’s capital account in the red for now.
“Over the past few years, we have seen fiscal deficits partially due to the economic environment as well as the geopolitics. But for our operating account, we are optimistic that we could reach a balance in the 2025-26 year, or even have a small surplus this year,” he said.
The finance chief also said the implementation of a 15-percent global minimum tax is also expected to rake in billions of dollars in future revenue.
Chan gave assurances that officials have no plans to introduce new taxes to further boost earnings, saying Hong Kong must remain competitive to lure in capital and talent.
But he said the government will continue to tighten its belt.
“In terms of the intensity of controlling government spending, we will continue to do so and will not relax just because the government’s revenue has improved in the short term,” Chan said.
The finance chief also said the government is aware that public views are divided on issues such as a possible land departure tax for cars leaving the territory, and officials will take these opinions into account.
Meanwhile, Chan said officials will continue to promote public-private partnerships in developing the Northern Metropolis to mitigate costs, adding that they have been in discussions with developers that are interested in high-tech and modern logistics projects there.
