HKICPA forecasts lower HK budget deficit for year-end 2022

The Hong Kong Institute of Certified Public Accountants (HKICPA) has forecasted a lower government budget deficit for this fiscal year ending March 31. HKICPA said the Hong Kong government is expected to record a budget deficit of HKD25.2bn, about 75% less than the government's forecast last February of HKD101.6bn. This is mainly due to the better-than-expected economic performance in the second half of 2021 and robust land sales. HKICPA suggested distributing a new round of consumption vouchers of HKD3,000 for each adult to further stimulate local consumer spending and to support the retail sector. Sarah Chan, chair of the taxation faculty executive committee, said the HKD3,000 voucher scheme, with HKD21.6bn estimated expenditure, will put less financial pressure on the government budget than having another round of the HKD5,000 scheme.