Budget 2026-27: Hong Kong operating surplus of HK$51.3 billion forecast
Financial Secretary Paul Chan announces surplus after 3-year deficit, with HK$20B for cross-border innovation.
Hong Kong's Financial Secretary, Paul Chan Mo-po, presented the 2026-27 budget, revealing a significant turnaround with a forecasted operating surplus of HK$51.3 billion. This marks an end to a three-year streak of deficits, a shift largely attributed to a recent stock market boom. While the improved fiscal health led to public calls for more direct benefits, Chan emphasized the need for fiscal prudence, maintaining adequate reserves to buffer against geopolitical uncertainties and support sustainable, long-term economic growth. The budget is framed as a strategic step to consolidate Hong Kong's roles as outlined in China's national 15th five-year plan.
The financial blueprint includes substantial investments to cement Hong Kong's status as a global hub. A core initiative is seeking HK$20 billion to fund a new cross-border innovation and technology (I&T) hub and tech zone. Furthermore, Chan announced a comprehensive review of the city's tax policy and pledged to inject funds into developing the intellectual property (IP) economy and aerospace sector. These measures are designed to diversify the economy beyond finance, foster high-tech industries, and secure Hong Kong's competitive edge in the region's innovation landscape.
- Forecasts HK$51.3 billion operating surplus, ending a three-year deficit cycle driven by stock market gains.
- Seeks HK$20 billion to establish a major cross-border innovation and technology (I&T) hub and tech zone.
- Announces a full tax policy review and new funding for IP and aerospace sector development.
Why It Matters
Signals a strategic pivot towards tech and innovation funding, aiming to diversify Hong Kong's economy and secure its long-term competitiveness.