Budget Speech

Estimates for 2021-22

186. The major policy initiatives announced in the 2020 Policy Address involve an operating expenditure of about $18.3 billion and a capital expenditure of $2.1 billion.  I will ensure that adequate resources are provided to fully support the launch of these initiatives.

187. Total government revenue for 2021-22 is estimated to be $591.1 billion.  Earnings and profits tax is estimated to be $200.7 billion, decreasing by 6.1 per cent compared with the revised estimate for 2020-21.  Having regard to the Land Sale Programme and the land supply target of the coming year, revenue from land premium is estimated to be $97.6 billion, increasing by 12.1 per cent compared with the revised estimate for 2020-21.  Revenue from stamp duties is estimated to be $92 billion, increasing by 16.5 per cent compared with the revised estimate for 2020-21.

188. The current-term Government has launched a series of measures to improve people's livelihood.  Recurrent expenditure for 2020-21 increased by 7.6 per cent compared with the last financial year, while total government expenditure also increased by 35 per cent.  Recurrent expenditure for the new financial year will further increase by 9.6 per cent, demonstrating the Government's determination to stimulate the economy and ease people's burden.  Public expenditure will account for about 25 per cent of GDP on average during the five- year period up to 2025-26 in the MRF.

189. In 2021-22, the estimated recurrent expenditure on education, social welfare and healthcare accounts for 58 per cent of government recurrent expenditure or $302.3 billion.  Recurrent expenditure in these three areas recorded a cumulative increase of 53 per cent over the past five years.

190. Our target is to have zero growth in the civil service establishment in 2021-22.  The Civil Service Bureau has encouraged departments to enhance effectiveness through re-prioritisation, internal redeployment and streamlining of work processes, so as to cope with the workload.