2023/24: forecast consolidated deficit of $101.6 billion. Fiscal reserves are forecast to be $733.2 billion by end March 2024
2024/25: forecast consolidated deficit of $48.1 billion. Fiscal reserves are forecast to be $685.1 billion by end March 2025
2025/26 to 2028/29: consolidated surpluses are forecast, with fiscal reserves estimated at $832.2 billion by end March 2029
Fiscal Consolidation Programme
Achieve fiscal balance gradually and maintain fiscal reserves at a prudent level
Focused on expenditure cut,with some revenue increases included pragmatically
Taking care of people’s needs by continued allocation of resources for the provision and ongoing improvement of public services
Contain Growth of Operating Expenditure
Maintain zero growth in civil service establishment
Reduce recurrent government expenditure by another 1% in 2026/27. CSSA and SSA Schemes will not be affected
Review operation mode of Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities (the "$2 Scheme") and Public Transport Fare Subsidy Scheme to enable financially sustainable provision of subsidies. The Government has no intention to cancel these schemes
Review and Re-prioritisation of Capital Works
Review cost-effectiveness of works projects and adjust implementation schedule according to priority and urgency
Works projects at comparatively mature stage of planning (e.g. site formation and infrastructure works for the Northern Metropolis): Take forward as planned
Works projects that are currently at the preliminary planning or conceptual stage: Adjust implementation schedule according to importance
Increase Revenue
Adjust fees and tax items based on “affordable users pay” principle
Business registration fees: increase by $200 to $2,200 per annum from 1 April 2024. Business registration levy of $150 will be waived for 2 years
Proposed two-tier standard rates regime for salaries tax and tax under personal assessment: affecting only taxpayers with over $5 million net income and whose tax payable is calculated at standard rate. Taxpayers on
progressive rates will not be affected
Hotel Accommodation Tax: Resume collection at 3% starting from 1 January 2025
Progressive rating system for domestic properties: Affecting domestic properties with rateable value over $550,000 only
