The 2011 - 2012 Budget
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Stabilise the Property Market

  • IllustrationSpecify in the Application List four residential sites for government-initiated sale by open auction or tender this year.
  • Put up for sale by tender five residential sites in addition to those sites on the Application List, and restrict their use for construction of about 3 000 small and medium-sized flats.
  • A total of 52 residential sites will be available for sale in 2011-12, comprising 18 new sites and 34 sites rolled over from last year’s Application List.
  • Housing land available in 2011-12 will provide a total of 30 000 and 40 000 private residential flats, far exceeding the target of an annual average of 20 000 flats.
  • The new public rental housing flat production forecast for 2011-12 and 2012-13 will be some 11 200 flats and 16 700 flats respectively.
  • Identify more suitable sites for the My Home Purchase Plan.
  • Allocate about $300 million to explore the feasibility of reclamation on an appropriate scale outside Victoria Harbour and rock cavern development to increase the supply of land.

Combat Inflation

  • IllustrationWaive rates for 2011-12, capped at $1,500 per tenement per quarter. About 82% of properties will be subject to no rates in the year, costing approximately $9.9 billion.Illustration
  • Electricity subsidy of $1,800 to each residential electricity account, benefiting over 2.6 million domestic accounts at a cost of $4.7 billion.
  • Pay two months’ rent for public housing tenants at a cost of $1.9 billion.
  • Provide one more month of CSSA payment, Old Age Allowance and Disability Allowance at a cost of $1.9 billion. Adjust these allowances as necessary in mid-year.


  • Raise child allowance by 20%, benefiting over 300 000 taxpayers
    at a cost of $650 million.
  • Increase dependent parent/ grandparent allowances and deduction ceiling for elderly residential care expenses by 20%, benefiting about 510 000 taxpayers at a cost of $570 million.
  • IllustrationReserve $24 billion for making a one-off injection of $6,000 into MPF accounts to increase the retirement savings of MPF scheme members.
  • Reserve an additional $100 million for making injection to the short-term food assistance services as and when needed.
  • Issue $5 billion to $10 billion worth of Hong Kong-dollar “iBond” to provide another investment option for coping with inflation while promoting the development of the local retail bond market.

Invest in the Future

  • IllustrationInvest continuously in infrastructure to promote growth. The estimated capital works expenditure for 2011-12 will reach a record high of over $58 billion, and will exceed $60 billion for each of the next few years.
  • Maintain a steady and adequate supply of Grade A offices to enhance our competitiveness. The land available for sale in 2011-12 includes sites that will provide a floor area of 600 000 square metres for commercial/ business use.
  • Develop new high-grade office clusters. Kai Tak will be developed into another premier office node, while two business sites in Kwun Tong and Kowloon Bay will be put up for sale this year to accelerate the commercial development in these two districts.
  • Continue to enhance the competitiveness of the four traditional pillar industries.
  • Promote the development of the six industries where we enjoy clear advantages, wine trading and explore new opportunities in emerging markets to promote the diversification of our economy.
  • Strengthen co-operation with Guangdong Province, Macao, Taiwan and other regions in various aspects to sharpen our competitive edge in the global market.
  • Enhance business environment to attract enterprises from all over the world to set up business in Hong Kong.
  • Support small and medium enterprises (SMEs) by increasing the total guarantee commitment under the SME Loan Guarantee Scheme substantially to $30 billion.

Other Measures

  • To protect public health, tobacco duty will be increased by 50 cents per stick of cigarette. Duties on other tobacco products will be increased by the same rate.
  • To contain the growth of private cars, the First Registration Tax for private cars will be increased by about 15%.

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Last revision date : 23 February 2011