2010 - 2011 Budget Highlights
Updated: 2010-02-25 07:34
(HK Edition)
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Consolidating Recovery
Economic Prospects: Cautiously Optimic
Economic outlook is cautiously optimistic.
Uncertainties and potential pitfalls remain in the external environment.
GDP forecast to grow 4-5% for 2010. Headline inflation forecast at 2.3%.Consolidated Account in 2010-11 forecast to incur a $25.2 billion deficit. Deficit expected to decrease
gradually in next few years, and achieve balance by 2013-14.
Fostering a Healthy Property Market
Number of completed
private residential units
will rise to 14,300 this year.
Estimated number of units
available in next three to
four years is 53,000.
Depending on market
conditions, the
government will put up
several urban residential
sites in the Application
List for sale by auction or
tender in the coming two
years if they have not been
triggered.
Liaise with the MTRC and
Urban Renewal Authority
to increase the supply of
small and medium-sized
residential flats.
Housing Authority will
actively explore means
to revitalise the secondary
market of Home Ownership
Scheme flats.
Raise stamp duty on
transactions of properties
valued over $20 million
from 3.75% to 4.25%.
Buyers will not be allowed
to defer stamp duty
payment.
Economic Development
Investing in Infrastructure
Promoting Development of Industries
Estimated capital works
expenditure will increase
to $49.6 billion.
Earmark $100 million to
support the Construction
Industry Council's efforts
to improve training and
related work.
Provide land resources,
human capital and
incentives to promote
the four traditional
pillar industries and the
six industries with clear
advantages.
Extend the stamp duty
concession in the trading
of exchange traded funds.
Extend concessionary
profits tax rate to cover
qualifying debt
instruments.
Allocate $41 million in
next two years to support
the work of the Hong Kong
Council for Testing and
Certification and the Hong
Kong Accreditation
Service.
Implement Hong Kong
Science Park Phase 3
development. Around
9,000 additional R&D and
construction jobs will be
created.
Extend profits tax
deductions to cover the
purchase of registered
trademarks, copyrights and
registered designs.
Allocate $7.9 billion to
implement remaining
works under Harbour Area
Treatment Scheme Stage
2A.
Set up a $300 million Pilot
Green Transport Fund, and
accelerate the tax
deduction for capital
expenditure on
environment-friendly
vehicles.
Provide $540 million
in subsidies for the
replacement of Euro II
diesel commercial vehicles.
Further regional co-
operation, complement the
National 12th Five-
Year Plan and enhance
exchanges and co-
operation with Taiwan.
Caring Society
Estimated recurrent expenditure on education, healthcare and social welfare will increase to $130 billion, or 56% of total government recurrent expenditure.
Developing Human Capital
Supporting Learning
Increase recurrent funding
for the School-based After-
school Learning and
Support Programmes to
$175 million.
Grant a full subsidy of
$1,300 or half subsidy of
$650 on Internet access
charges in the 2010
academic year for families
in need with children in
primary and secondary
schools. Complementary
services will be provided
through a non-profit
making organisation.
Allocate $1 billion for the
fifth round of the Matching
Grant Scheme for tertiary
institutions.
Inject $500 million into the
Language Fund to upgrade
proficiency in English and
Chinese.
Promoting Building Maintenance
Redeveloping Old Areas
Allocate an additional $500
million for "Operation
Building Bright" to help
owners maintain their
buildings, including
dilapidated buildings without
owners' corporations.
Urban Renewal Authority
will immediately take
forward a redevelopment
project near the collapsed
building in Ma Tau Wai
Road.
Promoting Culture and Sport
Fighting Drugs
Inject $3 billion into the
Arts and Sport Development
Fund as seed money.
Support the development
of the West Kowloon
Cultural District with an
additional $486 million
allocated over the next
five financial years for art
programme development,
including a $69 million
injection into the
Cantonese Opera
Development Fund.
Inject $3 billion into the
Beat Drugs Fund, and
allocate an additional $52
million in 2010-11 to
support anti-drug efforts.
Strengthening Public Healthcare
Provide an additional
$1.24 billion to the Hospital
Authority (HA) to
strengthen services
including:
- training of nurses
- services for cataract,
renal and cancer patients
- incorporating eight more
drugs into the HA Drug
Formulary and to expand
the clinical application
of nine drug classes.
38,200 patients will
benefit each year.
Allocate about $600 million
in the next three financial
years to strengthen
primary care services.
Allocate an additional $40
million to enhance drug
regulation.
Caring for the Needy
Raise recurrent funding by
$160 million to provide
over 1,000 additional
places in residential care
homes for the elderly.
Earmark $282 million in
the Lotteries Fund for pilot
schemes on home care for
the elderly and disabled as
well as a pilot Bought Place
Scheme for the disabled.
Provide additional
recurrent funding of $100
million to enhance services
for persons with disabilities.
Enhance medical and
community level support
for mental patients at a
cost of nearly $200 million.
Inject $200 million into the
Partnership Fund for the
Disadvantaged.
Suppoerting Job Seekers
Provide an additional $173 million to enhance employment services:
Launch a two-year Pilot
Employment Navigator
Program with 11,000
places per year.
Launch a program to
provide 12-month training
and internships for up to
500 young people with low
educational qualifications.
Relief Measures
Pay two months' rent for
public housing tenants at a
cost of $1.8 billion.
Provide one more month
of CSSA payment, Old Age
Allowance and Disability
Allowance at a cost of $1.8
billion.
Reduce 75% of salaries
tax and tax under personal
assessment for 2009-10,
capped at $6,000. This will
cost $4.5 billion.
Waive rates for 2010-11,
capped at $1,500 per quarter.
Ninety per cent of domestic
and 60% of non-domestic
properties will not need to
pay rates. This will cost $8.6
billion.
Waive the business
registration fee for one
year at a cost of $1.8 billion.
Provide a $1,000 allowance
to students receiving
CSSA or student financial
assistance. This will cost
$570 million.
ll figures are in HK dollars
(HK Edition 02/25/2010 page1)