Financial Secretary Paul Chan Mo-po has just released the last budget of the current administration, and it has attracted unprecedented public attention, as the embattled general public and business sectors have been eagerly waiting for sweeteners or relief amid the raging omicron outbreak that has badly harmed the economy as well as social confidence. The new budget, lavishing businesses and residents with handouts or relief measures, is a much-needed shot in the arm for many who have to tighten their belts to make ends meet.
Aside from health threats, the onslaught of COVID-19 over the past two years, particularly the latest omicron strain, has taken a heavy toll on the economy and livelihoods of many families. Timely relief measures for residents, such as a reduction in the salaries tax, rates concession and extra allowances for the grassroots, are much welcome. Meanwhile, rental concessions to eligible tenants of government premises, a reduction in the profit tax, the waiver of business registration fees, the provision of loans for enterprises, and ensuring tenancy are expected to alleviate the hard-hit commercial business sectors. It is hoped that when the pandemic fades way, additional resources will be reserved for undertaking initiatives aimed at reviving the severely affected sectors, such as the catering, tourism and convention and exhibition industries. What’s more, the announcement of another HK$10,000 ($1,280) consumption voucher for each eligible resident is probably the greatest boon that will cheer up the dismal public sentiment and stimulate local spending and uptick in commercial activities.
Not only has the budget provided the necessary financial resources as the most important arsenal in the war against the pandemic, but it also demonstrates the SAR government’s ability to roll out targeted initiatives by taking stock of the current situation
Apart from immediate economic relief, the financial secretary has also demonstrated his vision to restore social confidence in the future. Ensuring every family has a home of their own, as traditional Chinese wisdom suggests, puts people’s mind at peace, which is the building blocks of social harmony and stability. With Chan’s determination and vision in this regard, the SAR government will need to come up with bold and decisive concrete proposal to speed up land development planning, re-examine the use of land in the New Territories, and increase the supply of housing in different modes through various means. It is good to hear that Chan proposed to inject HK$1.2 billion to the Construction Innovation and Technology Fund, which will facilitate the launch of initiatives that expedite the housing supply. Concessionaire measures will also be introduced to encourage the adoption of modular integrated construction to shorten construction time, such as increasing the concession of floor area from the current 6 percent to 10 percent. These initiatives, although not immediate solutions, embody the SAR government’s commitment to resolving one of the deep-seated problems that constantly result in public grievances. With affordable housing on the horizon, hopefully people’s minds will be put at peace.
In his budget speech, Chan specifically raised the topic of people-centric development. To this end, the government should pay special attention to supporting the seniors and the young. Adequate protection and support for these two demographical segments will help ensure the overall well-being of the society.
Young people are the future masters of the society and deserve the allocation of resources for talent cultivation and development. To ease the problem of youth unemployment, Chan announced raising the subsidy ceiling of the Continuing Education Fund to HK$25,000 from HK$20,000, which will help aspiring youths pursue practical knowledge and skills. The government should, in the future, offer career development planning to undergraduates to better capture career opportunities in Hong Kong as well as in other Greater Bay Area cities. To ease the pressure young people face amid grim economic conditions, the government may consider increasing funding for social services for young people, particularly in the area of emotional support and counseling services.
As for the elderly, the government has to ensure they are properly taken care of, so that they will not live in poverty in their twilight years. Devising a sustainable retirement protection program would be the key. The financial secretary for his part has set aside HK$1.9 billion for strengthening community and residential care services as well as social work services for the elderly and other vulnerable groups. Furthermore, similar to the youth policies suggested above, the government can explore collaboration with other cities in the Greater Bay Area to set up more hospitals and elderly-care facilities catering to the needs of Hong Kong residents who choose to live and retire on the mainland.
As the English idiom goes, “an army marches on its stomach”. Not only has the budget provided the necessary financial resources as the most important arsenal in the war against the pandemic, but it also demonstrates the SAR government’s ability to roll out targeted initiatives by taking stock of the current situation. The slew of subsidies and relief measures are indeed a much-needed financial injection into the frail economy.
The author is senior research officer of the One Country Two Systems Research Institute.
The views do not necessarily reflect those of China Daily.
