Hong Kong must maintain cash reserves to cope with geopolitical shocks and support long-term growth, even with a surplus expected in the government’s operating account this year, the financial secretary has said.
Paul Chan Mo-po also said on Saturday that the city’s economy outperformed forecasts last year, lifted by strong exports to Southeast Asia and a booming financial market.
On Friday, the government announced a surplus of HK$43.9 billion (US$5.6 billion) in its operating account, which manages the daily public expenditure, for the nine months ended December 31.
But it cautioned that revenue would taper off after January, with expenditure significantly exceeding income from February to March.
While expressing understanding of different residents’ wishes for more financial incentives, Chan, who will deliver his budget speech in February, said authorities must manage their accounts cautiously.
“We should balance our current needs and middle- to long-term development, such as infrastructure construction in the Northern Metropolis,” he told a radio show, referring to the government megaproject to turn 30,000 hectares of land bordering mainland China into a technology and residential hub.
