New budget puts Hong Kong on track for growth, high-quality development and enhancing people’s quality of life

Financial Secretary, Mr Paul Chan, presented the first Budget of the current-term Government on 22 February 2023. It was also the first since Hong Kong’s emergence from the pandemic and removal of all travel restrictions. Under the title “Leaping Forward Steadily, Together We Bolster Prosperity under Our New Vision”, the Financial Secretary expected a visible economic rebound this year with growth of 3.5 to 5.5% for 2023.

Despite a difficult and ever-changing external environment, Mr Chan reiterated that the Government's financial position as well as Hong Kong’s financial system have displayed strong resilience and remained healthy. Hong Kong is at a new stage of the journey towards propelling economic growth through high-quality development. Hong Kong will endeavour to create new growth impetus through institutional and policy innovations and progress towards green transformation by vigorously promoting the development of green and low-carbon technology and industries. In fact, Hong Kong already has an edge when it comes to establishing an international green technology and financial centre as the city has pooled together quite a number of green technology enterprises and talents.

The Financial Secretary, Mr Paul Chan, delivering the 2023-24 Budget in the Legislative Council on 22 February 2023.

On the innovation and technology front, HK$6 billion (EUR 717 million) has been set aside for universities and research institutes to set up thematic research centres related to life and health technology and HK$3 billion (EUR 358 million) has been earmarked to enhance basic research in frontier technology fields such as artificial intelligence. To promote digital economy, HK$500 million (EUR 60 million) will be provided to the Hong Kong Cyberport for launching a Digital Transformation Support Pilot Programme to expedite the pace of digital transformation among companies. Under the initiative, subsidies will be provided on a one-to-one-matching basis to help small and medium enterprises apply ready-to-use basic digital solutions. In addition to funding, there will also be institutional innovations such as setting up a Green Technology and Finance Development Committee to formulate an action agenda, including the building of a green technology ecosystem to attract prominent companies and start-ups, and policy support to boost the demand for green technology.

In addition to propelling economic growth, the 2023-24 Budget does not lose sight of the need to enhancing people’s quality of life. The Financial Secretary has put forward a well-balanced range of proposals that provide timely relief for individuals and businesses during these challenging economic times. “I will issue electronic consumption vouchers again this year with a total value of HK$5 000 (about EUR 600) to each eligible Hong Kong permanent resident and new arrival aged 18 or above,” Mr Chan stated. A reduction of salaries tax and profits tax will also benefit 1.9 million taxpayers and 134 000 businesses respectively.

Hong Kong is also reaching out to welcome people from all over the world. The Government has rolled out the global publicity campaign “Hello Hong Kong”, with a focus on gourmet experiences, fun amusements and exciting ambience. It includes a lucky draw for 500 000 free air tickets, which are being distributed globally. More than HK$550 million (EUR 66 million) has been reserved for staging more mega events, international meetings, incentive travels, conventions and exhibitions in Hong Kong in the coming months.

The Budget Speech by the Financial Secretary can be downloaded here. For more details on the 2023-24 Budget, click here.