Hong Kong advised to issue bonds and utilize reserves to address budget deficit

Economy

1 year ago

News sources:

Credited from: SCMP

Hong Kong's government deficit is projected to approach HK$100 billion, with structural issues requiring more aggressive financial measures.
The University of Hong Kong’s Business School proposes enhancing infrastructure funding through bonds and utilizing a portion of reserves to sustain spending.
Associate Professor Liu Yang highlights the importance of prudent risk assessments when managing increased government debt.
Current reserves stand at HK$734.59 billion, equivalent to 25% of GDP, which the economist warns could be “counterproductive” if maintained at such levels.
The city has faced deficits since the 2019-20 financial year, with projections indicating that a strong economic recovery may lead to surplus earlier than forecasted.

For the full article, visit South China Morning Post.