Hong Kong Financial Secretary Paul Chan Mo-po will deliver his annual budget on Wednesday, unveiling measures to accelerate the city’s economic recovery after balancing the books, amid mounting expectations for more “sweeteners” in the blueprint.

The 2026-27 budget also marks the government’s first major test in aligning the city with mainland China’s 15th five-year plan and unveiling long-term growth initiatives.

The South China Morning Post examines how political and economic factors will shape the budget and what Hongkongers can expect from it.

1. What is the theme, and what are the debates?

The finance chief revealed on Sunday that this year’s budget will feature a purple cover, symbolising Hong Kong’s strengthening economic momentum amid a volatile external environment.

The budget comes against the backdrop of heightening geopolitical tensions, following US President Donald Trump’s announcement last week of a new 15 per cent global tariff.

With an earlier-than-expected operating surplus in sight, the government is under pressure to strategically invest in long-term growth engines while navigating headwinds, and deliver more sweeteners, even as economists warned that public finances could not support large-scale relief measures.

2. What measures have been revealed so far?

Sources told the SCMP that the finance chief would unveil a raft of measures to strengthen the city’s growing intellectual property (IP) economy, including investing tens of millions of dollars to establish a dedicated academy for nurturing professionals.