Hong Kong Budget Targets Deficit With Spending Cuts and AI Investment
Financial Secretary Paul Chan announces measures to reduce a projected $11.2 billion deficit, including civil service job cuts and a $1 billion AI research initiative.
- Hong Kong's 2025 budget outlines a $11.2 billion deficit for the current financial year, with plans to return to a surplus by 2026-27.
- The government will cut 10,000 civil service jobs by 2027 and freeze public sector salaries to reduce recurrent expenditure by 7%.
- A $1 billion AI Research and Development Institute will be established as part of a broader push to position Hong Kong as an international AI hub.
- Land sales, a key revenue source, have significantly declined, prompting a pause on commercial land sales and rezoning efforts to address the property market slump.
- Critics argue the budget lacks bold tax reforms and deeper structural changes needed to address long-term fiscal challenges.
The Japan Times 
CNA 
South China Morning Post 
