Public Finance

2021/22: Estimated surplus of $18.9 billion. Fiscal reserves are expected to be $946.7 billion by end March 2022 (equivalent to 16 months of government expenditure)
2022/23: Estimated deficit of $56.3 billion due to the expenses for one-off relief measures and anti-epidemic measures, equivalent to 1.9% of GDP
2023/24 to 2026/27: Fiscal balance is expected from 2023/24, fiscal reserves will gradually rebound to over $1 trillion

Striving to Maintain Healthy Public Finances

Government expenditure has entered a consolidation period. Long-term financial commitments should be commensurate with the increase in revenue
Maintain the development and vibrancy of our economy, and identify new areas of growth for increasing revenue
There is a need to implement measures to increase revenue without affecting people’s livelihood, but this is not the appropriate time to revise the rates of profits tax and salaries tax
The introduction of the global minimum tax rate in 2023 may help increase revenue from profits tax
Propose to introduce a progressive rating system for domestic properties to reflect the “affordable users pay” principle