Successive Hong Kong financial secretaries have over recent decades taken great pains to build up this city’s financial reserves, rather than spending more on such longed-for public benefits as a universal pension scheme. Their aim was to put aside vast sums, presently standing at HK$1.1 trillion (US$141 billion), as a resource for use by future generations of citizens, seen as a “rainy day’’ reserve. Today, this city holds more in financial reserves than most sovereign countries; but our rainy day has now come!

Hong Kong’s financial stability is under threat. The months of violent protests had already had a very negative effect on the economy here, resulting from a marked drop in visitor numbers. That has forced many tourist-focused businesses — such as hotels, transport, shops and restaurants — to lay off staff, requesting them to take unpaid leaves, or even to close down completely. Added to that, we now face the dangerous spread of the coronavirus, which itself disrupts travel and further limits the previously generous spending of visitor dollars here.

So it is certainly welcome news, just announced in the budget statement, that at last the Hong Kong SAR government is more willing to dip deeply into these reserves to support the community at this time of financial stress. Our reserves will drop to a still incredibly high level of HK$900 billion, following the spending plans announced in this budget. That move must generally be welcomed by all.

In any case, these budget proposals represent the highest level of government spending plans offered in a decade. Such steps in spending more of the public’s financial resources on the public, who own the reserves, are to be encouraged

Some HK$30 billion has already been allocated to a range of subsidies directed through the new Anti-epidemic Fund. Financial support for small and medium-sized businesses forms a large part of that varied and encouraging effort.

On the question of how best to target the general 2020-21 Budget’s spending plans to help Hong Kong people and businesses to weather this economic storm — a storm which seems likely to last for several more months — this latest budget will get mixed reactions. Some of the measures planned are all to the good, while others are of a more debatable nature. In any case, these budget proposals represent the highest level of government spending plans offered in a decade. Such steps in spending more of the public’s financial resources on the public, who own the reserves, are to be encouraged.

Let’s start with the most popular giveaway. Each adult Hong Kong permanent resident will receive a HK$10,000 cash handout. That is intended to boost consumption. That’s all very well, but at a time when, for fear of catching the virus, many citizens avoid going out to restaurants or other public places, we have to wonder just how much consumption will really be boosted by such a handout. And as always, when planning a universal giveaway, we must remember that the wealthy, who need it less, will collect this extra pocket money, along with the poor, for whom it represents a massive level of support during a difficult time.

And let us think of some of Hong Kong’s most disadvantaged residents — the foreign domestic workers, who contribute to the economy by their child-care and “granny-minding” services, thus freeing up parents to be able to hold down full-time jobs. They never become eligible for permanent residency in Hong Kong, so will unfortunately not receive this largesse.

Doubling the rate of allowances for low-income families is another welcome move; as also is the wider provision of elderly community care service vouchers; and the planned gradual increase in elderly home care places. But this budget regrettably overlooks what this city’s elderly really need: a universal pension.

The release of land, indeed added to the creation of (reclaimed) land from the sea off Lantau island, comprising the long-term Lantau Tomorrow Vision, is really pie-in-the-sky for people facing housing shortages now.

Planning for increased numbers of internship places, and more support for research in technology are further steps in an appropriate direction, though also on a longer timescale.

As many in this city face severe economic hardship, having lost their jobs, should we really be thinking of spending another HK$900 million on the arts development matching scheme? It would be much cheaper, and probably more effective, to give every deserving local artist HK$1 million each, and be done with it!

Inbound tourism was already faltering because of the long-term civic unrest and protester violence, even before this virus epidemic exacerbated the situation. At such a moment, providing another HK$150 million to promote conferences in Hong Kong which aim to build up this city’s previous trade hub status would appear to be a measure taken too soon. Tourism will return only after things calm down here. Therefore, the HK$700 million now allocated to the Tourism Board to promote tourism here may be premature.

On the other hand, increasing the budgetary contribution to the Hospital Authority by 35 percent compared with 2017-18, is clearly a measure well-targeted. Our rapidly aging population already requires more money to handle their healthcare needs, not to mention the growing costs of addressing the virus issues.

All in all, this is a budget which strikes many of the right notes, while a few of them are out-of-tune.

The author is a veteran commentator on Hong Kong affairs.

The views do not necessarily reflect those of China Daily.