Hong Kong Budget 2020/21

Get prepared for the budget announcement on 26 February

Find out our budget forecast and predictions on economic factors that could bring potential impact to you and your business. Join the discussion #HKBudget2020

Hong Kong Budget 2020/21: Revitalising Hong Kong's economy for greater success

Financial Secretary Paul Chan Mo-po will announce the 2020/21 Hong Kong Budget on 26 February, outlining the Hong Kong SAR Government’s plan for the economy and proposals for taxation developments.

To help you get prepared and stay ahead of change, here are our budget predictions on factors that could potentially affect you and your business.

Our budget predictions

Budget deficit of HK$38.3 billion* is estimated for 2019/20.

PwC predicts the government to record a HK$38.3 billion* consolidated budget deficit for the fiscal year 2019/20, based on projected fiscal revenue of HK$572.7 billion and expenditure of HK$617.3 billion.

*Including other investment items, e.g. net proceeds of HKD 7.8 billion from issuance of green bond, and the HKD 1.5 billion for repayment of bonds and notes

Fiscal reserves of HK$1,132.5 billion is expected by 31 March 2020.

PwC expects the fiscal reserves to stand at HK$1,132.5 billion by 31 March 2020. This is equivalent to around 22 months of the total government expenditure.

Bold and effective measures crucial to revitalising the economy and supporting Hong Kong’s long-term development.

PwC believes Hong Kong needs to strengthen its competitiveness to retain and attract businesses, investments and talent, with a view to revitalising the economy and achieving greater success.

Our recommendations

Attract and nurture I&T talent to drive long-term sustainable development

With Innovation & Technology (I&T) being one of the policy priorities for Hong Kong, PwC suggests introducing tax incentives to create a favourable environment for businesses, investors and talent. Going forward, we propose a cohesive and comprehensive review of Hong Kong’s tax system in view of the changing international tax landscape and emerging business models.

Hear from Agnes Wong, PwC Hong Kong Tax Partner, our proposed measures for the development of a more diversified and resilient economy.

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