Unpopulism

22 February 2017 By Pete Sweeney Follow @petesweeneypro

The city’s new finance chief rolled out new spending and said occasional deficits might be permitted. The shift away from stinginess comes weeks before Hong Kong chooses a new leader. But it’s unlikely to placate the protest movement; the massive $120 bln reserve stays untouched.

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Hong Kong's revised budget surplus is estimated at HK$92.8 billion ($12.0 billion) for the 2016/2017 fiscal year, up from the HK$11.4 billion original estimate, recently appointed financial secretary Paul Chan said in his maiden budget address on Feb. 22.

Hong Kong's fiscal reserve is expected to reach HK$935.7 billion ($120.6 billion) by end-March 2017.

"The growth of government expenditure cannot keep outpacing economic growth for an undue period, lest the risk of a structural deficit would emerge," Chan said.

The vote to select the next Hong Kong chief executive is scheduled for March 26. Only a fraction of the population, mainly tycoons and business leaders, can cast a vote.

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