CE's statement on 2026-27 Budget
The Chief Executive, Mr John Lee, today (February 25) issued the following statement on the 2026-27 Budget:
The Financial Secretary today delivered the fourth Budget of the current-term Government and put forward a series of innovative and practical measures to further implement the direction of the Policy Address to actively dovetail with the National 15th Five-Year Plan, empower Hong Kong's diversified developments through innovation, technology and finance, and cater to the people's needs while improving their livelihood. In pursuing the two major areas of "AI+" and "Finance+", the Budget will vigorously foster the enhancement of sectoral development, build Hong Kong into an international hub for high-calibre talent, further strengthen the city's core competitiveness, boost economic momentum, and resolutely speed up and scale up the sustainable development of our economy.
Benefiting from a booming economy and increased tax revenue, coupled with the Government's effective implementation of fiscal consolidation, Hong Kong's public finances have improved faster than expected. Taking full account of the Government's financial situation, the Budget has introduced a range of practical measures, including suitably increasing support for the public and small and medium-sized enterprises, enhancing medical services, addressing the needs of different social groups, and improving people's livelihood.
The Budget also proposes to maintain the efforts in consolidating and optimising the use of financial resources, continue supporting infrastructure development, particularly in accelerating the development of the Northern Metropolis. The Budget also proposes a rise in the scale of bond issuances and issuing more bonds of longer terms, with a view to support infrastructure projects and to promote the diversified development of the local bond market.
The Budget implements various effective measures outlined in the Policy Address and in accordance with the governance directions of the Government. It leverages Hong Kong's unique advantages of being connected to both the Mainland and the world under the "one country, two systems" principle in actively pursuing economic growth, advancing development, improving people's livelihood, seizing new development opportunities, and better integrating into and serving the overall national development. The Financial Secretary and I are confident that Hong Kong's economic momentum will continue its positive trend. I call upon all sectors of the community to support this Budget and work together to promote Hong Kong's high-quality development.
Source: AI-found images
Budget: Driving High-Quality, Inclusive Growth with Innovation and Finance
The Financial Secretary, Mr Paul Chan, unveiled today (February 25) his 2026-27 Budget. He noted that this year marks the beginning of the National 15th Five-Year Plan, and the country's sustained high-standard two-way opening-up, coupled with scientific and technological and innovation, has presented Hong Kong with new opportunities. Hong Kong must foster new quality productive forces in accordance with local conditions. Leveraging the edge of having close connectivity with the Mainland and the world, and with a large pool of talent, Hong Kong will facilitate enterprises in opening up new markets.
Mr Chan proposed a series of measures to drive innovation and technology development, including establishing the Committee on AI+ and Industry Development Strategy; taking forward the Sandy Ridge data facility cluster project; promoting AI training; and accelerating digital intelligence transformation of the Government. He noted that Hong Kong is pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all. Moreover, the International Clinical Trial Academy will also be established to help enable the Mainland's biomedicine technology to go global, attract foreign investment, and help develop Hong Kong into an international health and medical innovation hub.
To facilitate the development of new industrialisation, the Budget has earmarked resources for establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland, and the New Industrialisation Elite Enterprises Nurturing Scheme will be launched. The Government will promote the full integration of technological innovation and industrial innovation through key infrastructure, including the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and San Tin Technopole.
On finance, Hong Kong will proactively align with national development strategies, advance the internationalisation of the Renminbi, and continuously reform the securities market. The Government will legislate this year to enhance tax regimes for family offices and funds, as well as establish licensing regimes for digital asset dealing and custodian service providers. On tourism promotion, to support "tourism is everywhere" and promote "urban-rural integration", the Government will launch the Northern Metropolis Urban-rural Integration Fund as a pilot scheme to encourage the introduction of rural tourism projects.
Regarding land supply, Mr Chan said that specific land sale arrangements will be announced on a quarterly basis after careful consideration of market conditions and other relevant circumstances, for the steady development of the market. In view of the vacancy rate in the non-residential property market, and considering supply and demand, the Government will not put up general commercial sites for sale in the coming year.
On public finances, Mr Chan noted that tax revenue has increased over the past year, as a result of the booming economy and capital market. Coupled with the reinforced fiscal consolidation programme gradually bearing fruit, public finances have improved sooner than expected. In 2025-26, the Operating Account will return to a surplus ahead of schedule, while the Consolidated Account will be broadly balanced after taking into account the net proceeds from bond issuance. The Government will continue to strictly contain the growth of its operating expenditure and take forward the Productivity Enhancement Programme as planned. Moreover, to relieve the economic pressure faced by the people, the Budget proposes increasing the basic allowance, the single parent allowance, the married person's allowance, the child allowance, the allowance for maintaining a dependent parent or grandparent, and the deduction ceiling for elderly residential care expenses starting from the year of assessment 2026/27.
In conclusion, Mr Chan said that the global environment has remained volatile over the past year, and Hong Kong has continued to undergo economic transformation. Technological innovation, in particular the development of AI, has brought a mix of opportunities and challenges. Yet, Hong Kong has always thrived amid changes and progressed through innovation. While transformation is ongoing, the economy has recalibrated its course and is advancing steadily. Hong Kong must make full use of its strengths and leverage the resolute support of the country to speed up and scale up economic development sustainably, creating better development opportunities for the people and enhancing their quality of life.
For more details on the 2026-27 Budget, click here.
Source: AI-found images
