The Legislative Council passed the third reading of the Budget Bill after approximately 14.5 hours of debate yesterday through an anonymous vote. This marks the first time since 2004 that the budget has been approved through an anonymous voting process.
During the voting process, which coincided with lunchtime, at least 4 members hurried back to the council chamber less than two minutes before the final reading. Election committee member Ho Jun-yiu, who had previously expressed concerns about Hong Kong “living on borrowed funds” and indicated he would vote against the budget, was not present in the chamber during the vote. Members of the Democratic Alliance for the Betterment and Progress of Hong Kong, the Democratic Alliance for the Betterment and Progress of Hong Kong’s Lin Lin, and the New People’s Party’s Lee Tze-kin were absent during the vote and did not cast their votes. Nathan Law, who had abstained from voting on the budget for the past two years, switched to supporting it this time.
Financial Secretary Paul Chan stated that the government is determined and confident in restoring fiscal balance within around three years, emphasizing the focus on cost-cutting measures, reducing government recurrent expenditures, and strictly controlling expenditure growth. He reassured that the government is cautious to avoid impacting public services.
Chan also emphasized that the level of debt issuance is relatively low. In response to concerns about Hong Kong “living on borrowed funds”, he clarified that government borrowing is not used for recurrent expenditures but rather for investments and infrastructure projects, primarily aimed at promoting the development of the Northern Metropolis. Additionally, Hong Kong’s debt-to-GDP ratio is approximately 9% to 13%, which he claimed is a lower and safer level compared to any advanced economies.
Following the approval of the budget, Paul Chan mentioned that Hong Kong is currently undergoing an economic transition period, believing that opportunities outweigh challenges. He noted significant improvements in asset markets, including the stock market and property market, and expressed hope for a continued stable and positive trend. Looking towards the medium to long term, the focus will be on accelerating green transformation, developing digital economy, and advancing the construction of the eight key areas.