HK budget aims to create more jobs

In Hong Kong, few government announcements are taken as seriously as the annual budget speech of the Financial Secretary. It is an occasion when the government reaffirms its credibility by offering an unadulterated account of the state of the Hong Kong economy and setting the direction of economic policy for the next fiscal year.

In his second budget speech as Financial Secretary, John Tsang Chun-wah did exactly that. Branded as dull and uninspiring by spendthrifts and special interest groups, Mr Tsang's budget has apparently tried to set the least disruptive course for Hong Kong to sail through the stormy waters whipped up by the credit crisis that is dragging the world into a deep recession in 2009.

In keeping with the fundamental economic philosophy of Hong Kong, Mr Tsang has resisted growing pressure from politicians and social activists to follow the examples of some much larger economies that have introduced grand economic stimulus programs. Instead, his budget merely set aside HK$301.6 billion to be spent mainly on job creation.