Budget Speech

Revised Estimates for 2020-21

181. The 2020-21 revised estimates on government revenue is $543.5 billion, lower than the original estimate by 5.1 per cent or $29 billion.  This is mainly due to the lower-than-expected revenue from land premium.

182. Revenue from land premium is $87 billion, substantially lower than the original estimate by $31 billion, mainly due to the deferment of the disposal timetable of a high-value commercial site in the year.  Revenue from profits tax is $131 billion, comparable to the original estimate.  Meanwhile, revenue from salaries tax is $72 billion, which is $12.1 billion higher than the original estimate.  This is mainly because some tax revenue that should be received in the previous year could only be collected in this year as a result of the deferred tax assessment cycle.  Stamp duty revenue is $79 billion, which is $4 billion higher than the original estimate.  This is mainly due to the hectic trading in the stock market.

183. As for government expenditure, the revised estimate is $820.4 billion, 12.2 per cent (or $89.3 billion) higher than the original estimate.  This is mainly because of the need to make injections into the AEF and meet expenditure on other helping measures.  At the same time, expenditure on public works projects was $7.1 billion lower than the original estimate.

184. All in all, I forecast a deficit of $257.6 billion for 2020- 21.  Fiscal reserves are expected to be $902.7 billion by 31 March 2021.

185. The civil service establishment increased by 6 082 posts in this financial year, representing a growth of 3.2 per cent.  The increase in the establishment is mainly due to the implementation of new policies and measures by the Government and the need to cope with additional workload.