Budget 2020 -21 - Smoothen livelihoods
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Smoothen
livelihoods
Support
enterprises
Safeguard
jobs
Stimulate
the economy
2020 -21
Budget
Highlights
www.budget.gov.hk/
2020/eng/index.htmlStimulate • Extra 1 month
the economy allowance of standard
CSSA payment, Old Age
Allowance, Old Age Living
Smoothen Allowance or Disability Allowance.
livelihoods Similar arrangements will apply to
Work Incentive Transport Subsidy
• Pay 1 month’s rent for lower income
tenants living in public rental units
• Pay examination fees for candidates
Cash payout
$10,000
sitting 2021 HKDSE Examination
$10,000
cash payout to Support employees
Hong Kong permanent • Additional annual funding of
residents aged 18 $30 million to enhance Labour
or above Department employment
programmes. Raise ceiling of
on-the-job training allowance
• Reduce salaries tax and tax under
personal assessment for 2019-20 • Provide $2.5 billion to
assessment year by 100%, subject the Employees Retraining Board to
to ceiling of $20,000 enhance the Love Upgrading Special
Scheme. Increase the maximum
• Waive rates of domestic properties monthly allowance of trainees
for four quarters of 2020-21, subject to $5,800
to a $1,500 ceiling per quarter
• Construction Industry Council to
allocate $200 million for training
allowances for workers, and
subsidising SME
contractors
and registered
subcontractors
with a ceiling of
$20,000 eachConcessionary
low-interest loan
Introduce a concessionary low-interest
loan with 100% Government guarantee
for enterprises, which will be open for Continue to implement
application for 6 months. Maximum loan relief measures announced
of $2 million with repayment last year
period up to 3 years. Moratorium • Electricity charges for non-residential
on principal repayment for first
account: subsidise 75% of charges
6 months for 4 extra months, subject to
a monthly cap of $5,000
• Water and sewage
• Reduce profits tax for 2019-20 charges of non-domestic
assessment year by 100%, subject households: waive 75%
to a $20,000 ceiling of charges for 4 extra
• Waive rates for non-domestic properties months, subject to a monthly
for 2020-21, subject to cap of $20,000 and $12,500
respectively
a ceiling of $5,000 per
quarter in first two quarters • Local recycling enterprises:
and $1,500 per quarter provide $100 million rental subsidy
for remaining two quarters for 6 months
• Waive business registration fees • Rental for Government properties/
for 2020-21 properties covered by short-term and
• Waive registration fees for company temporary waivers: 50% reduction
annual returns for for 6 months
2 years • Hire charges for civic centres
under Leisure and Cultural
Support Services Department:
50% reduction for 6 months
enterprises • Fees and rent for cruise lines and
cruise terminal tenants: reduction for
Safeguard 6 months
jobs• Provide sufficient financial
support for the Hospital
Strengthen Authority (HA) and
the Department of Health
healthcare for anti-epidemic efforts
system • Provide recurrent funding of $75 billion
to the HA in 2020-21, an increase of
35% from 2017-18
• Allocate about $180 million to
Devote resources
universities to enhance facilities
and strengthen professional
to enhance services healthcare training
• Substantial resources devoted in • Renovate Department of Health
the last two Budgets: formulation clinics in phases
of the second 10-year Hospital
Development Plan, enhancement • Provide an additional
of healthcare manpower training, $3.6 billion to HA
expediting the upgrading or to retain talents in
acquisition of medical equipment, the 5 -year period
introduction of advanced medical starting from 2021-22
devices, expansion of
the scope of Drug Formulary, • Allocate about $600 million to
establishment of a $10 billion subsidise the setting up of interim
public healthcare “District Health Centre (DHC)
stabilisation fund, Express” by non-governmental
development of organisations in 11 districts where
Chinese medicine DHCs have yet to be set up
services and
promotion of primary healthcare services • Launch the tender process for
the construction work of the first
• Earmark about $500 billion for the Chinese Medicine hospital in
two 10-year Hospital Development Plans, Hong Kong
providing over 15 000 additional
• Allocate sufficient resources to
hospital beds and more than
related bureaux to support people
90 operating theatres suffering from mental distress
to meet projected
service demand
up to 2036Financial services
• Lower minimum entry age of
the HKMC Annuity Plan from 65 to 60
• Launch a $1 billion pilot scheme for
fixed-rate mortgages to help reduce
Innovation
risks of interest rate volatility for and technology
homebuyers
• Earmark $3 billion to take forward
• Issue inflation-linked retail bonds and Phase 2 of the Science Park
Silver Bonds totalling not less than Expansion Programme
$13 billion • Explore the establishment of a third
• Issue green bonds InnoHK research cluster
totalling $66 billion • Increase the grant ceiling under the
in next 5 years Technology Voucher Programme
to $600,000 and raise the
• Waive stamp duty on
stock transfers paid by the Government’s funding ratio to 75%
Exchange Traded Fund (ETF) market
• Inject $345 million for
makers when creating and redeeming
a pilot subsidy scheme
ETF units in Hong Kong
to encourage the
• Establish a limited partnership regime logistics industry to
and provide tax concession for carried enhance productivity
interest issued by private equity funds through the application
to attract them to domicile and of technology
operate in Hong Kong
Tourism
• Additional funding of over
$700 million for the
Hong Kong Tourism
Diversified
Board to step up
external promotion
economy after the epidemicTrade
• Additional funding of Nurture talents
$150 million for the Hong Kong • Expand the Researcher Programme
Trade Development Council to assist and Postdoctoral Hub to
Hong Kong enterprises in exploring cover all technology
business opportunities companies
conducting
Professional services R&D activities
in Hong Kong
• Earmark about $450
million to implement
• Earmark $40 million
the “Vision 2030 for
to subsidise short-
Rule of Law” project
term internships for
to strengthen
undergraduates and
the Hong Kong
postgraduates taking
community’s
STEM programmes in
understanding of the concept of
local universities
the rule of law and its implementation
• Government and public organisations
Cultural and to increase short-term internship
creative industries places for 2020-21 to almost
5 000
• Additional $900 million to
the Art Development Matching
Grants Scheme to further
promote sponsorship
of culture and arts
from all sectors
Designed by the Information Services Department
Printed by the Government Logistics Department
Hong Kong Special Administrative Region Government
(Printed with environmentally friendly ink on recycled paper)Environmental
protection
Electric
transportation
• Launch
• Formulate Hong Kong’s a scheme in the
first roadmap on the use of second half of this year to phase out
electric vehicles
about 40 000 Euro IV diesel
• Launch a $2 billion pilot scheme commercial vehicles. $7.1 billion
to subsidise the installation of earmarked for ex-gratia payment to
charging-enabling vehicle owners concerned
infrastructure in car parks of
private residential buildings • Earmark $300 million for the
Cleaner Production Partnership
• Earmark $80 million to launch Programme to encourage Hong
a pilot scheme for electric Kong-owned factories to adopt
public light buses cleaner production technologies,
so as to help improve regional
• Earmark $350 million to environment
launch a pilot scheme for
electric ferries • Set up a $200 million
Green Tech Fund
to support the R&D
and application of
decarbonisation and
green technologies
• Earmark no less than $300 million
per year to implement waste paper
collection and recycling services
in the second half of 2020, to help
stabilise the quantity and price of
local waste paper
Liveable citySmart city
• Announce the Smart City
Blueprint for Hong Kong 2.0
this year to further promote smart
city development
• Earmark $1 billion for the
Caring
Smart Traffic Fund to subsidise society
research and application on
• Allocate over $300 million
vehicle-related I&T
recurrent funding to provide 3 000
• Allocate $100 million to develop home care service quotas for frail
an integrated digital platform for elderly persons in the coming two
data integration and information years and issue 1 000 community
exchange in order to strengthen care service vouchers to elderly
project supervision persons with moderate or severe
impairment in the coming year
• Launch a territory-wide
3D digital map in phases • $75 million recurrent funding to
from this year. Earmark subsidise elderly service units for
$60 million to establish providing soft meals to elderly
the first Geospatial Lab to persons with swallowing difficulties
promote the application of
spatial data • $46 million recurrent funding to
subsidise Social Welfare
• Launch the “iAM Smart”, Department-subvented NGOs
a one-stop personalised digital operating day service units to meet
service platform, in the fourth the electricity charges of providing
quarter of this year air conditioningLand and
housing
• Continue to pursue new
• Potential land supply of 2020-21 development area projects, rezone
Land Sale Programme, railway sites for housing development,
property development projects and develop brownfield clusters and
private development/ urban squatter areas, etc. to provide
redevelopment projects expected land to increase housing supply
to provide about 15 700 units.
Another 6 commercial sites
estimated to provide floor area of
Public housing
about 830 000 sqm Estimated production from
2019-20 to 2023-24 is about
• Start receiving applications of the 100 400 units, comprising
Land Sharing Pilot Scheme in the about 74 400 public rental
first half of 2020 to increase supply housing/Green Form Subsidised
of public and private housing in Home Ownership Scheme units,
short to medium term
and 26 000 subsidised
• Announce the latest land forecast sale units
in the second quarter of 2020 to
provide a blueprint of
future land search Private housing
and creation for Estimated annual production from
the Government
2020 to 2024 is about 19 600
units on average2020-21 Investment
Total government income
$57B
revenue and
expenditure
Other revenue Salaries tax
$131.7B $59.9B
Profits tax
$130.9B Land premium Stamp duties
$118B $75B
Total government
revenue $572.5BEnvironment
and food
$40B Infrastructure
10.0 %
Recurrent
$78.3B expenditure
$486.6B
Economic Health
$120.9B $97.7B Social welfare
$115B
Others
(including community
Security and external affairs) Education
$65.8B $101.1B $112.3B
Total government
expenditure $731.1B
Econo
GDP
growth
2019
performance -1.2%
2020 -1.5%
forecast to 0.5%Public
finance
2019-20 financial year 2021-22 to 2024-25 financial years
• Deficit of about $37.8 billion, • Estimated deficits range between
equivalent of about 1.3% of GDP $7.4 billion and $17 billion
• Main reason is Government revenue
2020-21 financial year cannot keep up with drastic
• Estimated deficit of about increases in expenditure (especially
$139.1 billion, equivalent of about recurrent expenditure)
4.8% of GDP
Facing the
• Almost $120 billion of deficit challenge
related to the cash payout scheme • Future Government expenditure
and other one-off relief measures, will enter a consolidation period
which will not incur long-term
financial commitments • For future spending increases,
should be more mindful of
long-term affordability and in
line with increase in revenue
omy • To increase revenue, we need
to maintain the growth and
vibrancy of the economy,
and identify new areas of
economic growth
Headline Underlying • May have to consider
inflation inflation seeking new revenue
sources or revising
2.9% 3.0% tax rates
• May have to reduce
one-off relief
1.7% 2.5% measures progressivelyYou can also read
