The 2018/19 budget

Financial Secretary Paul Chan Mo-po announced his 18/19 budget on 28 February that 40 percent of the record budget surplus of HK$138 billion in 2017/18 will be shared with the community “directly and indirectly.”

Here are “Budget Sweets” at a glance:

• Reduction in profits tax for 2017/18 by 75%, capped at $30,000;
• Reduction in salaries tax and taxes under personal assessment for 2017/18 by 75% capped at $30,000;
• Increasing child allowances to $120,000 and the allowance for maintaining a dependent parent of up to $50,000;
• Waiving rates for four quarters in 2018/19, capped at HK$2,500 per quarter for each ratable property;
• Providing an 2 months extra allowance to recipients of CSSA, Old Age Allowance, Old Age Living Allowance or Disability Allowance;
• Providing a one-off grant of $2000 for students in need;
• Paying the examination fees for candidates setting the 2019 Hong Kong DSE Exam;
• Providing a one-off additional $1,000 worth of elderly health-care vouchers

Overall government expenditure for 2018/19 is estimated to HK$557.9 billion, an increase of 17.6 % compared to the 2017/18 amount.  The surplus is expected to decrease to HK$46.6 billion by the end of the 2018/19 financial year.

The government will continue to have a surplus in next five year.  This year’s GDP is projected to grow by 3-4 percent, and inflation at 2.2%.