The 2026-27 Budget, unveiled by Financial Secretary Paul Chan Mo-po on Feb 25, lays out a HK$599.7 billion ($76.7 billion) expenditure blueprint across 291 paragraphs. More than the figure itself, what stands out is its sense of direction — a steady hand guiding the Hong Kong Special Administrative Region toward sustained growth while safeguarding residents’ livelihoods. It is a fiscal road map that blends confidence with compassion, setting a firm course for balanced, long-term prosperity.

At its core, the Budget can be understood through three guiding principles — or the “three As”: anchoring Hong Kong in national development; addressing immediate livelihood needs; and achieving a return to surplus with renewed confidence. Together, they reflect the SAR government’s determination to secure economic strength without losing sight of social stability.

Anchoring Hong Kong in national development

This year marks the start of the nation’s 15th Five-Year Plan (2026-30), underscoring high-quality growth and common prosperity. The Budget deliberately aligns Hong Kong with this national mission. Through the dual promotion of “Artificial Intelligence+” and “Finance+”, the government is reinforcing Hong Kong’s role in two of the most transformative arenas of the modern economy — innovation and financial interconnectivity.

These initiatives are not just visionary slogans. They form the backbone of Hong Kong’s strategy to consolidate its status as an international financial, trading and maritime center, while advancing its transformation into a global innovation and technology hub. By investing in frontier technologies, nurturing talent, and facilitating cross-border collaboration, Hong Kong continues to serve as both a bridge and a catalyst in the nation’s high-quality development journey.

Integration into the Guangdong-Hong Kong-Macao Greater Bay Area further strengthens this synergy. Enhanced connectivity with Shenzhen and other key Greater Bay Area cities will accelerate the flow of capital, information and expertise — a fusion that is essential to elevate Hong Kong’s overall competitiveness. Aligning local economic priorities with national objectives is therefore not only a strategic necessity but also a practical path to shared prosperity.

Addressing immediate livelihood needs

A sound fiscal policy must address today’s challenges even as it plans for tomorrow. The Budget recognizes that sustainable growth is only meaningful when the benefits reach ordinary residents. It earmarks significant resources to support families affected by the Tai Po blaze and provides additional relief for vulnerable groups. Eligible recipients of the Comprehensive Social Security Assistance, Old Age Allowance, Old Age Living Allowance and Disability Allowance will each receive an extra month’s payment — a timely measure to ease household burdens amid economic uncertainties.

Tax concessions and rates reductions complement these efforts, injecting liquidity into the community and reinforcing consumer confidence. In doing so, the government demonstrates its commitment to shielding the public from inflationary pressures and maintaining social stability.

Perhaps the most encouraging message in this year’s Budget is the projected return to a fiscal surplus after five consecutive years of deficits. This turnaround reflects Hong Kong’s economic resilience and prudent financial management

Equally noteworthy is the proposed enhancement of transparency in private healthcare pricing. By requiring private hospitals and clinics to publish their fee schedules, the government is directly responding to widespread public concern over medical costs. Such openness not only empowers patients to make informed choices but also encourages fair competition within the healthcare sector. Over time, this can help relieve pressure on the public healthcare system — a pressing issue for an aging society.

A return to surplus and renewed confidence

Perhaps the most encouraging message in this year’s Budget is the projected return to a fiscal surplus after five consecutive years of deficits. This turnaround reflects Hong Kong’s economic resilience and prudent financial management. Stronger capital-market performance — evidenced by robust turnover and a revival in initial public offering fundraising — has significantly bolstered fiscal revenue. Stamp duty receipts are forecast to reach HK$102.8 billion, far exceeding earlier estimates.

This rebound marks more than a statistical achievement. It restores public confidence in the government’s fiscal discipline and creates fresh space for both strategic investment and targeted poverty alleviation. The recovery also reinforces Hong Kong’s reputation as a well-governed international financial center — one that remains fiscally sound, institutionally stable and globally connected.

As the external environment becomes increasingly complex, Hong Kong’s pragmatic fiscal approach stands out. The Budget not only reaffirms the government’s capacity to maintain stability amid change, but also signals to global investors that Hong Kong’s fundamentals remain strong and its prospects bright.

The 2026-27 Budget charts a clear course for Hong Kong’s next phase of development — one that marries economic ambition with social responsibility. It acknowledges the importance of aligning with national priorities, while ensuring that local communities are not left behind. By striking that balance between growth and care, between progress and prudence, the financial secretary has delivered a Budget that reflects the city’s defining strength — resilience rooted in confidence, unity, and a shared sense of purpose.

In steering Hong Kong through fiscal recovery and social renewal, the Budget not only secures the city’s present but also positions it for a future of balanced, high-quality growth. The “Pearl of the Orient” continues to shine — with steadier, brighter confidence.

The author, a member of the Legislative Council, is the deputy chairwoman of the LegCo Parliamentary Liaison Subcommittee of the Hong Kong Special Administrative Region. She is also a member of the United Nations Association of China.

The views do not necessarily reflect those of China Daily.