Hong Kong’s financial chief has revised the city’s fiscal surplus for the previous year to HK$11 billion (US$1.91 billion), nearly four times the original estimate, saying the ongoing Middle East conflict had a limited impact on the economy with gross domestic product (GDP) growth remaining strong in the first quarter.

Financial Secretary Paul Chan Mo-po also dismissed concerns that increased bond issuance to fund the Northern Metropolis megaproject would burden future generations as “overly alarmist,” as lawmakers approved his annual budget on Wednesday.

Speaking ahead of the vote, Chan said the surplus was revised to HK$11 billion, HK$8.1 billion higher than the HK$2.9 billion originally forecast in the budget.

The government’s consolidated account returned to the black in the 2025-26 financial year, after three consecutive years of deficits.

Chan reassured lawmakers that the administration had prepared for various scenarios amid volatile geopolitical conditions, noting that Hong Kong, as a small and open economy, would inevitably be affected by the external environment.

“Heightened geopolitical tensions have posed risks of an economic downturn, and we are closely monitoring the developments in the Middle East and the impact of rising international fuel prices,” Chan said.