Advertisement
Opinion | Fewer budget handouts are a blessing in disguise for Hong Kong
- Increased dependence on the government lets it off the hook for not getting on with addressing the city’s deep-rooted problems
- Now without the balm of handouts, the government has to take on the painstaking work to revive our economy and support households with children
Reading Time:3 minutes
Why you can trust SCMP
5
The budget Financial Secretary Paul Chan Mo-po delivered last week might have been the most challenging one for him yet. Chan became financial secretary when the city had huge reserves, which afforded him the leeway to pay for crowd-pleasing measures, such as the consumption vouchers that came to save the day during the Covid-19 pandemic’s darkest days.
Advertisement
By harping on our finite resources and budget deficits, Chan has in the past done reasonably well to manage people’s expectations. But the tactic has become less convincing.
Even with the government handing out HK$5,000 (US$640) consumption vouchers, on top of other “sweeteners” such as tax allowances, the general consensus is that this year’s budget is just a “better than nothing” budget.
The handouts drew on coffers fattened by previous administrations. But with our falling revenues and a negative economic outlook, they have become increasingly unaffordable.
In 2020, Chan called the handout an “exceptional measure taken in the light of the current unique circumstances”. The situation has changed, even if households and businesses are still struggling.
Advertisement
Perhaps this is also a “blessing in disguise” budget. It’s a good thing that the government can no longer rely on handouts in lieu of coming up with better policies. At the end of the day, giving money to the people isn’t sound or sustainable public finance management.
21:41
Hong Kong consumption vouchers have ‘more psychological than real’ impact on boosting spending
Hong Kong consumption vouchers have ‘more psychological than real’ impact on boosting spending
Advertisement