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Hong Kong doubles this year's deficit forecast to $12.9 billion

Published 12/02/2024, 02:51 AM
Updated 12/02/2024, 02:55 AM
© Reuters. FILE PHOTO: Tourists relax on the waterfront in front of Victoria Harbour, with the iconic skyline buildings as a backdrop, in Hong Kong, China June 28, 2023. REUTERS/Tyrone Siu/File Photo

HONG KONG (Reuters) - Hong Kong is set to post a consolidated deficit of around HK$100 billion ($12.85 billion) for the fiscal year through March, more than twice originally forecast, the city's financial chief said on Monday.

The new deficit forecast was made by Financial Secretary Paul Chan at a legislative council meeting earlier, after taking into account bond issuance proceeds and repayments.

It was due to an asset market under pressure, which in turn hurt government revenue from land sales and stamp duties, according to an official transcript of the meeting.

Chan had forecast a deficit of HK$48.1 billion in his annual budget in February. The financial hub posted a consolidated deficit of HK$101.6 billion for fiscal 2023/24.

© Reuters. FILE PHOTO: Tourists relax on the waterfront in front of Victoria Harbour, with the iconic skyline buildings as a backdrop, in Hong Kong, China June 28, 2023. REUTERS/Tyrone Siu/File Photo

The financial secretary's office did not immediately respond to a Reuters request for comment.

($1 = 7.7828 Hong Kong dollars)

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