Hong Kong must issue bonds as public works drive capital account deficit: Paul Chan
Finance chief also says annual budget will be delivered on February 25
Hong Kong’s heavy investment in public works will keep its capital account at a deficit, highlighting the need for bond issuances to fund critical infrastructure and long-term development, the finance chief has said.
Financial Secretary Paul Chan Mo-po also revealed on Sunday that the next annual budget would be delivered on February 25.
Looking at the current budget, he said that core spending on education, healthcare and social welfare accounted for nearly 60 per cent, even as higher stamp duty revenue and other income sources allowed the government’s operating account to return to a surplus earlier than expected.
In his official blog, Chan said while the city had successfully reined in spending through a strengthened financial consolidation plan, the benefits of infrastructure investments typically emerged slowly.
“We must actively invest in the future, particularly by speeding up the development of the Northern Metropolis, seizing opportunities without delay, and consolidating future growth drivers,” Chan said as the public consultation for his 2026-27 budget entered its final month.
“The returns on infrastructure investment often only manifest gradually after completion. With the government’s increased investment in public works, the capital account for this financial year will still record a deficit.