Public finance

Bootstrap Slider

Government Revenue and Expenditure

2019-20 financial year

  • Deficit of about $37.8 billion, equivalent of about 1.3% of GDP

2020-21 financial year

  • Estimated deficit of about $139.1 billion, equivalent of about 4.8% of GDP
  • Almost $120 billion of deficit related to the cash payout scheme and other one-off relief measures, which will not incur long-term financial commitments

2021-22 to 2024-25 financial years

  • Estimated deficits range between $7.4 billion and $17 billion
  • Main reason is Government revenue cannot keep up with drastic increases in expenditure (especially recurrent expenditure)

Facing the challenge

  • Future Government expenditure will enter a consolidation period
  • For future spending increases, should be more mindful of long-term affordability and in line with increase in revenue
  • To increase revenue, we need to maintain the growth and vibrancy of the economy, and identify new areas of economic growth
  • May have to consider seeking new revenue sources or revising tax rates
  • May have to reduce one-off relief measures progressively

Download highlights leaflet (in PDF format) (about 1422 KB)