Budget Speech

Estimates for 2020-21

157. The major policy initiatives announced in the 2019 Policy Address involve an operating expenditure of $48.7 billion and capital expenditure of $24.8 billion.  I will ensure that adequate resources are provided to fully support the launch of these initiatives.                  

158. Total government revenue for 2020-21 is estimated to be $572.5 billion.  Earnings and profits tax are estimated to be $202 billion.  Having regard to the Land Sale Programme and the land supply target of the coming year, land revenue is estimated to be $118 billion which decreased by 16.6 per cent compared with the revised estimate for 2019-20.  Revenue from stamp duties is estimated to be $75 billion which increased by 19 per cent compared with the revised estimate for 2019-20.   

159. Since taking office, the current-term Government has launched a series of measures to improve people's livelihood.  Operating expenditure for 2019-20 increased by 22.2 per cent, compared with the last financial year with an increase in total government expenditure by 15 per cent.  The operating expenditure for the new financial year will further increase by 16.9 per cent, demonstrating the Government's determination to stimulate the economy and ease people's burden.  Public expenditure will account for about 23.2 per cent of our GDP during the five-year period up to 2024-25 in the Medium Range Forecast.     

160. In 2020-21, the estimated recurrent expenditure on education, social welfare and healthcare accounts for about 60 per cent of government recurrent expenditure, together exceeding $280 billion.  Recurrent expenditure in these three areas recorded a cumulative increase of 50 per cent over the past five years.      

161. We will increase the manpower of various departments as appropriate in 2020-21.  The civil service establishment is expected to expand by 6 082 posts to 197 845, representing a year-on-year increase of about 3.2 per cent.  The increase in manpower is to cope with additional workload and support the implementation of new government policies and initiatives.



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