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Five highlights from the 2020-21 Budget Address
Financial Secretary Paul Chan unveiled HK$120 billion in counter cyclical measures – double that of last year – in the 2020-21 Budget Address delivered on 26 February. It comes against the backdrop of a bleak growth forecast of -1.5% to 0.5% and an unprecedented HK$139 billion deficit for the 2020-21 financial year.
Watch the Financial Secretary's webinar explaining the initiatives
Among the package of sweeteners for businesses and individuals, we’ve pinpointed five major highlights:
- HK$10,000 cash pay-out to all permanent residents (aged 18 or above)
- Up-to HK$2 million low-interest loan available for SMEs with 100% guarantee by the Government
- HK$700 million to the HKTB for tourism promotion once the epidemic is over
- 100% reduction in profits tax for enterprises for 2019-20 (up to a ceiling of HK$20,000)
- Waiver of business registration fees for 2020-21
For more information on the Budget, visit the official website:
2019 and 2020 numbers in a snapshot:
- Economic Performance in 2019 -
GDP growth: -1.2%
Headline inflation: 2.9%
Underlying inflation: 3.0%
Unemployment (latest): 3.4% - the highest in more than 3 years.
- Economic Forecast for 2020 -
GDP growth: -1.5 to 0.5%
Headline inflation: 1.7%
Underlying inflation: 2.5%
