Hong Kong government deficit to balloon to HK$100 billion in 2024-25: Paul Chan

Hong Kong’s deficit will more than double to HK$100 billion (US$12.8 billion) in the 2024-25 financial year from the HK$48 billion forecast the previous year, the finance chief has said, feeling the pinch of property slump and weakened corporate performance. At a Legislative Council financial affairs panel meeting on Monday, Paul Chan revealed that the deficit was substantially worse than what he had estimated at the beginning of this year as the soft property market took a heavy toll on the government’s income in land sales, stamp duty and corporate taxes.

“The government’s income was far lower than expected,” he said. “Before September, the property transactions were very slow, which affected our stamp duty income.” The latest’s deficit estimate at HK$100 billion was similar to 2023-24 level of HK$101.



6 billion. The government has also recently downgraded its full-year gross domestic product to 2.5 per cent year-on-year growth based on weaker global demand and local consumption.

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