Chen Maobo pointed out in his speech:

Last year, Hong Kong's economy grew by 6.1%, and the latest unemployment rate rose to 7%. In total, the SAR Government has invested nearly $300 billion in support, hoping to play a role in stabilizing the economy and alleviating the hardship of the people. However, this has also pushed up the fiscal deficit to an all-time high.

At present, the epidemic still lingers and the economy is not yet out of recession. The most urgent task is to stop the epidemic and promote the vaccination programme at full speed, so that people's livelihood and various trades and industries can get back on track as soon as possible, and resume reciprocity with the mainland and the international community as soon as possible.

As for the economic outlook, he expects Hong Kong's economy to have "positive growth" this year, but it still depends on cross-border passenger flow. It is expected that the economic recovery will strengthen in the second half of the year. The growth rate this year will be between 3.5% and 5.5%, and deflation will be lower than the pre-recession level. He also predicted that the Hong Kong economy would grow by 3.3% and basic inflation of 2% between 2022 and 2025.

This year's Budget focuses on stabilizing the economy and alleviating the hardship of the people. through counter-cyclical measures of more than $120 billion, it can alleviate the pain and pressure brought about by the economic downturn and the impact of the epidemic, and give full play to the leverage effect of the use of resources. we will try our best to benefit the public, wage earners and enterprises.

Equally important is to grasp the general direction and new trend of future development and strategically strengthen policy guidance, co-ordination of measures and allocation of resources in key links, so as to enrich, diversify and interact with the industrial development of Hong Kong and add new momentum.

The specific measures are summarized below (Futu Information is extracted from the Hong Kong Government News Network):

Support businesses and employment

• Extend the application period for 100% guaranteed enterprises' low-interest loans to the end of this year, raise the loan limit to 6 million yuan, extend the repayment period and the arrangement of "interest repayment without principal repayment"

• 100% profits tax concession for the year of assessment 2020Universe 21, capped at 10000 yuan

• Reduction of rates for non-domestic properties for the year 2021 / 22, subject to a quarterly ceiling of $5000 in the first two quarters and $2000 in the second two quarters

• Waive the business registration fee for the 22nd year of 2021max

• Continue to reduce 75% water charges / sewage charges for non-domestic users for 8 months, with a monthly ceiling of 20000 yuan / 12500 yuan per household

• Continue to waive 75% rent and fees for eligible government properties / short-term tenancies and waivers for 6 months (100% waived if closed at the request of the Government)

• Launch the fourth Special Love value-added Scheme to broaden the choice of courses and increase the number of online courses

• Plans to expand the scope of the continuing Education Fund to include online courses

• A total of $6.6 billion has been allocated to create about 30000 time-limited jobs.

Relieve the hardship of the people

• 100% guaranteed personal ex-gratia loan:

Provide an additional financial option for the unemployed; the loan amount is capped at 80000 yuan, with an application period of 6 months; the annual interest rate is fixed at 1%, with a maximum amortization of 5 years; only interest is repaid in the first 12 months, and the interest paid will be refunded after full repayment as scheduled.

• Reduction of salaries tax and personal assessment for the year of assessment 2020, subject to a ceiling of 10000 yuan

• Reduction of residential property rates for the year 2021: 22, with a quarterly ceiling of $1500 for the first two quarters and $1000 for the second two quarters

• Subsidy of 1000 yuan for each electric power residential user account

• Similar arrangements are also made for the payment of an additional half a month of CSSA standard rate, old age allowance, elderly living allowance or disability allowance, working family allowance and personal allowance.

• Payment of examination fees for school candidates taking the 2022 Hong Kong Diploma of Secondary Education examination

• 1 billion yuan has been set aside to subsidize the maintenance of sewers in more than 3000 old buildings.

Economic recovery

• Electronic consumption voucher:

Electronic consumption coupons of a total amount of $5000 will be issued to each eligible Hong Kong permanent resident and new arrivals aged 18 or above in phases to encourage and stimulate local consumption.

• Inject 1.5 billion yuan into the "Special Fund for Brand Development, upgrading, Transformation and expanding the domestic Market", raise the upper limit of enterprise funding to 6 million yuan, and expand the geographical scope of funding in stages

• Allocate $375 million to the Hong Kong Trade Development Council to enhance the ability to organize online activities and digitize them.

• To study the use of the platform of the Hong Kong Trade Development Council to assist young entrepreneurs in promoting original products

• Research and development enterprise version of "smart convenient" digital identity authentication platform

• Most government forms and licence applications can be submitted electronically from the middle of next year.

• From the middle of next year, electronic payment options will be provided for most government bills and licences (including "fast turn")

• Actively study and develop "Hong Kong legal Cloud"

• Set aside 169 million yuan to continue local cultural, historic and creative tourism projects.
  

• Set aside $765 million to support the Hong Kong Tourism Board to revitalize tourism

• The Hong Kong Tourism Board comprehensively examines the long-term positioning of Hong Kong's tourism after the epidemic and formulates strategies to promote the recovery of tourism.

• Under the premise of protecting public health, consider resuming local tour groups to strive for operating space for tourism.

• To discuss and arrange the "air travel bubble" with suitable regions.

Boost the economy

Financial service

• This year, we will continue to issue not less than 24 billion yuan of silver bonds and not less than 15 billion yuan of inflation-linked bonds. The subscription age for silver bonds will be lowered from 65 to 60.

• About 175.5 billion yuan of green bonds will be issued in the next five years, and green retail bonds are planned to be issued.

• Launch of the Green and Sustainable Financial Assistance Scheme to finance bond issuance expenditure and external review services

• Strive to open "Bond Link" southbound trading by the end of the year to enhance the central clearing system for local debt instruments

• Support the listing of real estate investment trusts in Hong Kong

• Launch of the pilot Insurance-linked Securities funding Scheme to finance issuance expenses

• Subsidize open-end fund companies to set up or reregister in Hong Kong

• Review the tax arrangements applicable to the family office business.

Innovative science and technology

• More than 200 million yuan has been earmarked to promote the "fun IT" project. Aided primary schools will enhance students' interest, understanding and application of information technology through extra-curricular activities.

• To regularize the pilot project to subsidize science and engineering students from local universities to participate in short-term internships in the entrepreneurial industry.

• Inject a total of $9.5 billion into the Innovation and Technology Fund over two years

• The Hong Kong Monetary Authority studies how to improve the supervision of sandboxie and shorten the time for innovative financial products to launch on the market.

• Make every effort to promote the development of Hong Kong-Shenzhen Innovation and Science and Technology Park located in Ma Chau River Loop area

• Continue to promote the expansion of the Science Park and the construction of Cyberport Phase 5

• Continue to support the promotion of 5G networks and application services

• In the first quarter of this year, the first batch of about 20 R & D laboratories of "InnoHK Innovation Hong Kong R & D platform" were launched one after another.

Air transport industry

• With the expansion of the express freight terminal, the opening of the new high-end logistics center and the airport three-runway system, the annual cargo handling capacity of the Hong Kong International Airport is expected to increase to about 9 million metric tons in 2024.

• Actively study measures to facilitate Hong Kong's transshipment so as to maintain Hong Kong's competitiveness as an international air cargo hub

• The redevelopment of the air mail centre at the Hong Kong International Airport can be opened by the end of 2027 at the earliest.

Cultural and creative industries

• Inject another 1 billion yuan into the Creative Intelligence Scheme.

Construction industry

• Improve the professional skills and project promotion ability of middle-level government managers

• Promote cost management culture to the industry

• We will continue to actively promote the "assembly and synthesis" construction method and the digitization of public works projects.

Land and housing

• The potential residential land for 202111 22 Land Sale Programme, railway property development, private development and redevelopment projects will provide about 16500 flats. The other three commercial sites are expected to provide about 480000 square meters of commercial floor space.

• In the new development areas and the developments under planning, it is estimated that more than 860 hectares of brown land in the New Territories can be developed for housing or other land uses.

• The study rezoned five commercial sites in East Kowloon to residential use, which is expected to provide a total of about 5800 private housing units.

• Review about 40 "government, institution or community" sites with joint use potential and put forward specific development proposals within this year

• A pilot scheme to levy land premium at the "standard rate" will be launched this quarter to encourage the redevelopment of industrial buildings.

Housing supply

• Public housing: it is estimated that about 101400 flats will be built in the five years from 2020, including over 70000 public housing / green home ownership flats and over 30000 subsidised flats for sale

• Private housing: an average of more than 18000 units are expected to be completed each year in the five years from 2021.

Livable city

Green city

• The first roadmap for the popularization of electric cars in Hong Kong will be published soon, including measures to stop newly registered fuel private cars by 2035

• To complete the update of Hong Kong's Clean Air Blueprint in the middle of this year

• Set aside 1 billion yuan to add small renewable energy installations to government buildings and infrastructure

• Set aside 150 million yuan to conduct energy audits and install energy-saving devices for non-governmental social welfare organizations free of charge.

• An additional 1 billion yuan will be allocated to the recovery Fund to extend the application period to 2027.

Relieve traffic congestion

• Increase the tax rate of all tax bands of private cars (including electric private cars) by 15%, and license fees by 30%.

• The Transport Department continues to conduct studies on the congestion levy and the pilot scheme on electronic road pricing in Central.

High quality life

• Set aside 500 million yuan to optimize country park facilities

• Set aside $55 million to improve hiking trails in country parks

• Set aside about 300 million yuan to implement the five-year Plan to upgrade Football pitch facilities

• Continue to promote the work of optimizing the waterfront.

Strengthen the medical system

• Allocate an additional $147 million to strengthen mental health services

• Continue to work with universities to upgrade and increase medical teaching facilities

• Two district health centres will be opened in the next two years, and the "district health stations" in 11 districts will be able to carry out services during the year.

• Continue to make every effort to promote the first decade of hospital development plan, and actively prepare for the second decade of hospital development plan.

Care and communion

• Elderly services: about 8800 new residential care places and about 2800 subsidized day care places for the elderly will be provided in the next few years

• Rehabilitation services: the number of places for pre-school rehabilitation services is expected to be increased to a total of 10000 in the 2022 / 23 academic year.

• To inject $1.1 billion into the Lotteries Fund to ensure that much-needed social welfare services development projects can take forward the feasibility study as scheduled.

Public finance

• 2020ax 21: projected deficit of 257.6 billion yuan

• 20211,22: the projected deficit is 101.6 billion yuan, equivalent to 3.6% of GDP, mainly due to the introduction of counter-cyclical fiscal measures and the continued increase in recurrent expenditure

• The deficit is projected for 4 consecutive years, mainly because government expenditure (especially recurrent expenditure) is growing faster than revenue.

• Government expenditure has entered a period of consolidation, and the long-term financial commitment must be commensurate with income growth.

• Maintain economic development and vitality, find new growth points to increase income

• Issue green bonds to fund green projects and enhance the government's fiscal space

• Review the rates system and explore the room for optimization

Deal with the challenge

Savings:

Implementation of zero growth in the civil service establishment in 2021 / 22nd

On the premise that the expenditure on people's livelihood will not be affected, the government recurrent expenditure in 2022x23 will be reduced by 1%, resulting in an estimated savings of about 3.9 billion yuan.

Increase revenue:

The stamp duty rate on stocks will be increased from 0.1% to 0.13% according to the transaction amount.

At present, it is not appropriate to adjust the profits tax and salaries tax rates. The government will keep under review and adjust them in a timely manner.

At present, there are no conditions for the introduction of new taxes. the Government will study and prepare for the introduction of new taxes, conduct discussions in due course and seek consensus.