Financial Secretary Paul Chan Mo-po unveiled his maiden Budget yesterday. In face of an enormous fiscal surplus of $138 billion, in face of various appeals from various social sectors, in face of great opportunities brought about by our nation’s development and the complicated and ever-changing international environment, Paul Chan hands out a pragmatic and worthy-of-support budget with a sincere and responsible attitude.
A government must have clear ideal in financial management, and a budget must have specific goals. The new Budget is not ambiguous in both of these regards. In the Introduction, the Budget sets three major goals at the outset: Diversified economy, Investing for the future, and Caring and sharing.
Concrete measures proposed in the Budget are clear-cut in terms of domain, target and purpose, such as setting aside an additional $50 billion for inno-tech projects such as in biotechnology and artificial intelligence (AI); increasing recurrent expenditure for medical care and education; providing an extra allowance equal to two months of the standard rate to Comprehensive Social Security Assistance (CSSA), Old Age Allowance and OALA recipients; reducing salaries tax and tax under personal assessment by 75 per cent, subject to a ceiling of $30,000; increasing the allowances for maintaining a dependent parent or grandparent and the basic and additional child allowances; and providing a one-off grant of $2,000 to each student in need to support learning.
Therefore, it may be said that with the three goals, the new Budget focuses on the future to emphasis on diversified economic development in Hong Kong and stress on the prospects of "mass entrepreneurship and innovation" while consolidating traditional advantages. Such an orientation is correct and practical. Economic development is always the foundation and lifeblood for Hong Kong's survival. Once economic development stagnates, it is inevitable for "all kinds of diseases and ailments to break out" in society. In face of the current political environment, when the government makes efforts to ease conflicts, it must at the same time be aware that the root of all so-called "public resentments" in fact lies in the economy and people's livelihood. Only when "extreme remedies" are applied to strengthening body constitution and improving immunity, can "diseases" be cured, and body be reinvigorated and health be improved.
On the other hand, while eyeing on economic and long-term development, Paul Chan does not shift his sight away from the most needy grass-root families and the middle class moaning about poverty. The Budget launches a series of relief measures that could be said benefiting everyone. The strength is not small. Before the Budget was unveiled, calls for "handing out cash" had caused a great clamour. Now there is no "cash handout", but the grass-roots and middle class both benefit from the Budget, with everyone getting no less than $6,000 one way or another.
As a matter of fact, this year's fiscal surplus exceeds $138 billion, and the "God of Fortune" estimates the outlook of the coming year and even of a foreseeable few years will remain good. Under such circumstances, a more urgent issue before the SAR Government is how to further make good use of surpluses to boost wealth effects and achieve greater social benefits.
In this regard, at least three aspects are worthy of consideration:
The first is to improve governance. The government should take the opportunity provided by financial abundance to improve governance and efficiency. The Budget sets aside a large amount of money for medical care and education. But the quality of medical care and education is not just an issue concerning money. New hospitals have been built in Tin Shui Wai, North Lantau and other areas, which however cannot start operation due to shortage of medical personnel. Is this a problem caused by shortage of money? Promotion of national education meets obstacles one after another, and schools become the target of infiltration by localism and "independence for Hong Kong". Does this have anything to do with money? The answer is self-evident.
The second is to firmly seize opportunities. Development can hardly be pursued without money. With money, one can take a chance. The nation's 13th Five-year Plan, the Belt and Road initiative and the Guangdong-Hong Kong-Macao Bay Area development, all have reserve a "priority seat" for Hong Kong. If we do not get on board at this moment, we'll just miss it.
The third is to remind citizens to treasure the good situation that is hard to come be, and not to send Edward Yiu Chung-yim and his ilk into the legislature in the legislative by-election. Otherwise, it would be like to "put a mouse into the rice tank". Then however huge surpluses as there may be, they will all be wasted by filibustering and "infighting" in the Legislative Council, and still not enough. 01 March 2018
