Hong Kong Finance Secretary presents annual budget

Hong Kong's Finance Secretary is tightening purse strings this year to manage a record fiscal deficit in the face of the COVID-19 pandemic.

In his budget speech Wednesday, Paul Chan announced continuing measures to help businesses and individuals adding up to approximately USD 15.3 billion, but no splashy initiatives like cash handouts, and no special fund for the unemployed.

Chan emphasized that Hong Kong spent big in the first year of COVID-19, and that dented Hong Kong's reserves.

This year he's offering relief on taxes for businesses and individuals, as well as a special loan programme for the unemployed, that will postpone repayment and charge only one per cent interest.

As well as the impact of the virus, Chan highlighted the economic influence of U.S.-China relations, which he predicted "will remain in a state of continued tensions…without a total breakdown."

Small groups of protestors gathered outside the government offices and Legislative Council complex demanding more help including another cash handout and financial assistance for the unemployed.

Hong Kong's current social distancing regulations still limit public gatherings to a maximum of four people.

Chan expressed optimism for Hong Kong's recovery from the pandemic, forecasting 3.5 – 5.5 per cent economic growth this year.

Image: AP