Government and Policy

HK budget proposal helps meet rising living costs

(Xinhua)
Updated: 2011-02-23 19:49

HONG KONG - The 2011-2012 financial budget proposal has responded to community aspirations for the surplus to benefit as many people as possible, and the surplus is used responsibly to help people meet rising living costs, Hong Kong Chief Executive Donald Tsang said on Wednesday.

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Responding to the newly-unveiled budget proposal, Tsang said it is a thoughtful and responsive budget, with targeted initiatives to alleviate the impact of rising inflation.

Tsang said the proposal has also taken advantage of Hong Kong's relatively healthy fiscal situation to make sustained investments in some key policy areas, while adhering to the principle of prudent management of public finances.

The higher-than-expected revenues have allowed us to return wealth to the people through a number of one-off measures that will help stave off the effects of rising inflation in the short term, without adding to inflationary pressure, said Tsang.  

As an additional way to neutralize the impact of inflation, inflation-linked bonds will be issued for the first time in Hong Kong.

"The budget also contains major decisions on long-term public expenditure," said Tsang, recurrent spending has increased by eight percent over 2010-2011's budget, signaling increasing spending on the key areas of education, health care and welfare.

The budget also focuses on the long-term vitality of Hong Kong' s economy, said Tsang, with concrete measures to strengthen our edges in the traditional economic pillars and support the development of other sectors where Hong Kong enjoys clear advantages.

Hong Kong's Chief Secretary for Administration Henry Tang also delivered his thoughts toward the budget proposal, saying "this budget is comprehensive, thorough, as well as within our affordability to be able to alleviate or mitigate much of the pressure that the community faces. "

Regarding to the housing prices, Tang said the budget has introduced more supply in order to mitigate or to stabilize the prices of housing, "I urge the community and LegCo members to support this Budget."