Budget Spreads Prosperity

The Financial Secretary, Mr. Henry Tang, has unveiled a package of budget measures designed to "share the fruits of economic prosperity with the community" and support Hong Kong's ongoing economic development and job creation.

The centrepiece of the Budget is a C$3 billion package of tax concessions and other one-off relief measures, including:
• C$742.4 million cuts in salaries tax
• C$37.8 million reduction in stamp duty on property transactions
• C$1.22 billion in salaries tax rebate
• C$833.3 million in rates waiver
• C$227 million in additional social security payments

Mr Tang said the Government's fiscal position had markedly improved as a result of the strong economic recovery and he forecast a consolidated surplus of C$8.35 billion for 2006-07.

The Financial Secretary will also allocate additional funds for the disadvantaged, including:
• C$45.45 million for a pilot scheme to help unemployed and low-income people in remote areas seek jobs
• C$45.45 million to help children from disadvantaged backgrounds
• C$17.12 million for community and family support measures 

Revealing that GDP grew by 6.8% in 2006, the Financial Secretary pledged to maintain strict fiscal discipline and manage public finances prudently. 

Mr Tang added that the government would continue to earmark an average of C$4.4 billion a year for infrastructure projects. Major projects coming on-line soon, such as the Tamar development, improvement works for the 2009 East Asian Games sports facilities and water mains replacement and drainage works, are expected to create about 23,000 jobs. 

"Hong Kong's restructuring should complement the economic development of the Mainland and create a 'win-win' situation," he said. To sustain future economic development and job creation, the Financial Secretary pledged to continue to promote the development of the financial services sector, to enhance the competitiveness of the trade and logistics industry and to continue to promote the development of tourism infrastructure. 

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