The Legislative Council on Thursday passed a bill worth over HK$627 billion (US$80.9 billion) to provide support to Hong Kong people suffering hardship brought about by the coronavirus and months of social unrest.  

The bill will include economic relief measures worth around HK$122 billion in the 2020-21 financial year.

The bill will include economic relief measures worth around HK$122 billion in the 2020-21 financial year

The Appropriation Bill 2020 was passed by a 42-23 vote, with one vote of abstention. All opposition lawmakers voted against it.

After the voting, Financial Secretary Paul Chan Mo-po told the media the SAR government would implement the relief measures as soon as possible.

All 52 amendments proposed by opposition lawmakers were vetoed. These had included cutting the salaries of the chief executive and senior officials and slashing the police budget.

Chan said the unprecedented HK$122 billion relief package focuses on supporting businesses, protecting employment, boosting the economy and alleviating people's suffering through cash handouts. This will include subsidies to the low-income groups, generous tax concessions, and support to businesses, the financial secretary added.

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The package includes a HK$10,000 cash payout to each adult permanent resident, a concessionary low-interest loan, and a 100 percent salaries tax rebate subject to a ceiling of HK$20,000 — which will benefit 1.95 million taxpayers.

Chan reiterated that application for the cash handouts will commence at the end of June. It is expected eligible residents can start collecting the handouts from July; most will receive them in August.

He urged eligible residents to use online registration to receive the handouts more quickly.

The financial secretary also said the government was liaising with the retailing and catering industries to launch some promotions to stimulate local consumption. He stressed that these promotions would not involve public funds.

Chan said that if there are residual funds in the Retail Sector Subsidy Scheme under the Anti-epidemic Fund, they will all be used for other purposes.

He said he hopes everyone can get back to work to help the economy recover.

READ MORE: HK deep in recession as GDP dives 8.9%

Chan announced the budget, covering government’s expenditure from April 1 to March 31, 2021, in a Feb 26 speech.

Battered by the ongoing COVID-19 pandemic and protracted social unrest, the economy contracted 8.9 percent in the first quarter of 2020 — the worst quarterly plunge on record. The unemployment rate in the first quarter soared to a nine-year high of 4.2 percent.

The Budget forecasts a record high deficit of HK$139.1 billion for 2020-21, owing to the cash handouts and other one-off relief measures.

Contact the writers at heshusi@chinadailyhk.com