FS delivering budget address
25-02-2009
The Financial Secretary, John Tsang, has begun delivering his budget address in the Legislative Council. Job creation is expected to be the government's top priority with the economy expected to have tailed off significantly during the first quarter of the year. The unemployment rate is already up to 4.6 percent - the highest in more than two and a half years. But many believe the worst is still ahead, with thousands of new university graduates flooding the job market this summer. Given this, the government may propose a subsidy for companies providing internships to fresh graduates. It's also expected to speed up infrastructure projects to drive the economy. But these measures will add to the burden on the public purse. The government has forecast a budget deficit of $7.5 billion for the current fiscal year. Estimates from tax accountants swing from a surplus of HK$10 billion to a deficit of HK$9.7 billion, but many are predicting much tougher times to come. And this may ultimately dash taxpayers hopes of substantial sweeteners in the budget - expecially given the tax rebates, rates and public housing rent waivers and the power subsidy handed out last year.
