Hong Kong budget 2026-27: ‘sweeteners’ for grass roots or the middle class?

AdvertisementHong Kong economyHong KongHong Kong EconomyHong Kong budget 2026-27: ‘sweeteners’ for grass roots or the middle class?Debate grows in the wake of finance chief’s projection that city will achieve early operating account surplus after three-year deficitReading Time:5 minutesWhy you can trust SCMPMatthew ChengPublished: 8:30am, 21 Feb 2026Updated: 8:38am, 21 Feb 2026Hong Kong’s improving fiscal position has prompted a groundswell of calls for the government to offer more “sweeteners” in the coming budget, including a cross-party demand for more tax relief for the middle class, but economists have cautioned against such across-the-board measures.They were more supportive of targeted spending, a cause taken up in recent weeks by concern groups asking for more specific forms of help for grass-roots residents, especially the unemployed.The growing debate was sparked by Hong Kong finance chief Paul Chan Mo-po’s disclosure last August that the city was set to achieve an early operating account surplus after three consecutive years of deficit.AdvertisementIn February, Chan said that a stock market boom had helped the government’s operating account return to surplus in the 2025-2026 financial year – a year earlier than projected.The surplus could reach about HK$500 million (US$64 million), according to estimates by some accounting firms.AdvertisementThe government rolled out one-off support measures totalling HK$8.3 billion last year, a 28 per cent year-on-year reduction from HK$11.5 billion in 2024 and an 86 per cent drop from HK$59.4 billion in 2023.With the improved public finances, there has been a growing chorus for more sweeteners in this year’s budget.AdvertisementSelect VoiceSelect Speed0.8x0.9x1.0x1.1x1.2x1.5x1.75x00:0000:001.00x