Budget Highlights The 2021-22
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Overcoming
The 2021- 22 the Epidemic
Budget
Highlights Stimulating
the Economy
Building
a Liveable City
Public
Finance
www.budget.gov.hk/
2021/eng/index.htmlOvercoming
the Epidemic
Support Enterprises • Continue to grant
75% rental/fee
• Extend the application period of concession for
100% guarantee low-interest loan for eligible Government
enterprises to the end of this year, properties/short-term tenancies
raise loan ceiling to and waivers for 6 months ( 100%
$6 million, extend concession for those closed at the
repayment period Government’s request)
and duration of
principal moratorium
• Reduce profits tax for 2020-21
Support Employment
assessment year by 100% , subject • Launch the fourth
to a $10,000 ceiling tranche of
Love Upgrading
• Provide rates concession for Special Scheme,
non-domestic properties in 2021-22, provide more
subject to a ceiling of $5,000 per training options
quarter in first two quarters and and online courses
$2,000 per quarter in remaining
two quarters • Plan to expand the scope of Continuing
Education Fund to include online
• Waive business registration fees courses
for 2021-22
• Allocate $6.6 billion to create around
• Continue to waive 30 000 time-limited jobs
75% of water and
sewage charges of
non-domestic
households for
8 months, subject
to a monthly ceiling
of $20,000 and $12,500
respectivelyRelieve People’s Hardship • Provide rates
concession for
domestic properties
in 2021-22, subject
Set Up a Special to a ceiling of
10 0% Loan Guarantee $1,500 per quarter in first
two quarters and $1,000 per quarter
for Individuals in remaining two quarters
ng • Grant a subsidy of $1,000
• Provide an extra financi
for the une mp loy ed to each residential electricity
option
account
• Loan ceiling at $80,000
.
Application period of 6 mo nths • Provide an extra half-month
allowance of standard
• Interest rate fixed at 1%
per CSSA payment, Old Age
rep aym ent
annum. Maximum Allowance, Old Age
period of 5 yea rs Living
Allowance
• Principal moratorium for or Disability
the first 12 months. Offer Allowance. Similar
t
reimbursement for interes arrangements will apply to
paid afte r loa ns are
Working Family Allowance
repaid in full and Individual-based Work
as scheduled Incentive Transport Subsidy
• Pay examination fees
for school candidates DSE
sitting for 2022
HKDSE Examination
• Reduce salaries tax and tax under
personal assessment for 2020-21 • Earmark $1 billion to
assessment year by 100%, subsidise drainage repair
subject to a $10,000 ceiling works in over 3 000 old
buildingsElectronic • Provide electronic submission means
Consumption for most government forms and licence
Vouchers applications by mid-2022
• Provide e-payment options
Issue $5,000 electron (including Faster Payment
ic
consumption vouchers System) for making payments
in
instalments to each elig of most government bills and
ible PAY
Hong Kong permanent licences starting from
resident and new arriva mid-2022
l
aged 18 or above
to facilitate and • Explore the
00
stimulate local $50 development of
consumption the Hong Kong
Legal Cloud
Support Tourism
• Inject $1.5 billion into the Dedicated
Fund on Branding, Upgrading and • Earmark $169 million to continue
Domestic Sales, increase funding to take forward local cultural,
ceiling per enterprise to $6 million heritage and creative tourism projects
and extend its geographical
• Earmark $765 million to support
coverage in phases
Hong Kong Tourism Board (HKTB)
• Allocate $375 million to Hong Kong in reviving the tourism industry
Trade Development Council (HKTDC)
• HKTB to conduct a comprehensive
to enhance its capability to organise
review of the positioning
online activities and to proceed with
of Hong Kong’s tourism
digitalisation
in the long run,
• Explore the use of HKTDC’s platforms formulate strategies to
to assist young business starters in spur industry’s recovery
promoting their original products
• Consider reviving local group tours
• Develop the business version of the provided that public health can be
“iAM Smart” digital authentication safeguarded, allowing room for
platform industry’s business operation
• Discuss and work
out Air Travel Bubble
arrangement with
Reviving suitable places
the EconomyStimulating
the Economy
Financial Services Innovation and Technology
BON
• Issue no less than D • Earmark over $200 million to roll out
$24 billion of Silver
D
BON “Knowing More About IT” Programme,
Bond and no less than subsidise primary schools to enhance
$15 billion of iBond this year. students’ interests and knowledge in
Lower the eligible age for Silver Bond I&T and their applications through
subscription from 65 to 60 extra-curricular activities
• Issue green bonds totalling $175.5 • Regularise the pilot scheme which
billion within the next 5 years, and plan subsidises students studying science
to issue retail green bonds and technology in local universities to
enrol in short-term I&T related internships
• Roll out Green and
Sustainable Finance Grant • Inject $9.5 billion into
Scheme to subsidise the Innovation and
expenses on bond issuance Technology Fund by
and external review services two yearly instalments
• Strive for the launch of Southbound • Hong Kong Monetary Authority to
Trading of Bond Connect within this consider enhancing its Fintech
year, and enhance the domestic Supervisory Sandbox to reduce time
Central Moneymarkets Unit for launching innovative financial
products in the market
• Provide subsidy for Real Estate
Investment Trusts to list in Hong Kong • Press ahead with the development
of the Hong Kong-Shenzhen
• Launch a Pilot Insurance-linked Innovation and Technology Park in
Securities Grant Scheme to subsidise the Lok Ma Chau Loop
issuance costs
• Continue to implement the Science
• Provide subsidy for Open-ended Fund Park expansion and Cyberport 5
Companies to set up in or re-domicile development
to Hong Kong
• Review tax arrangements relevant
to family office business• Continue to support the
development of 5G networks
Cultural and
and applications Creative
• Commence progressively Industries
the operation of the
first batch of about • Inject an additional $1 billion into
20 R&D laboratories the CreateSmart Initiative
under the “InnoHK
Research Clusters”
in the first quarter of this year Construction Industry
• Enhance the professional skills of
Air Cargo Sector mid-tier managers in the Government
and uplift their project delivery
• With the expansion of the existing capability
express air cargo terminal, the
commissioning of a new premium
logistics centre and the Three Runway
System, annual cargo handling
(Printed with environmentally friendly ink on recycled paper)
capacity of Hong Kong International
Hong Kong Special Administrative Region Government
Airport (HKIA) is expected to increase
Designed by the Information Services Department
Printed by the Government Logistics Department
to some 9 million tonnes in 2024
• Promote cost management
culture to the industry
• Continue to promote the
• Explore measures to facilitate Modular Integrated
trans-shipment through Construction (MiC) method
Hong Kong, so as to and digitalisation of
maintain Hong Kong’s public works
competitive edge
as an international
air cargo hub
• Redevelop the Air Mail Centre at
HKIA to become operational by
end 2027 at the earliestBuilding
a Liveable City
1 2
Green City Relieve Traffic Congestion
• Announce • Increase the rate of each tax band for
Hong Kong’s first the first registration tax for private cars
roadmap on the popularisation of (including electric-private cars) by 15%
electric vehicles, measures include and the vehicle licence fee by 30%
ceasing the new registration of
fuel-propelled private cars in 2035 • Transport Department to continue the
or earlier studies on “Congestion Charging” and
the Electric Road Pricing Pilot Scheme
• Complete updated Clean in Central
Air Plan for Hong Kong by
mid-2021
Quality Living
• Earmark $1 billion to • Earmark $500 million
install small-scale to enhance facilities in
renewable energy country parks
systems at government
buildings and infrastructure • Earmark $55 million
to enhance hiking
• Earmark $150 million to conduct trails in country parks
energy audits and install energy-saving
appliances, free of charge, for social • Earmark around $300 million to
welfare NGOs implement a five-year plan for
upgrading football pitches
• Inject $1 billion into
Recycling Fund and • Continue to implement harbourfront
extend the application enhancement works
period to 2027Strengthen Caring and
Healthcare System Inclusion
• Allocate $147 million • Elderly services: provide about 8 800
to enhance mental residential care places and about
health services 2 800 subsidised day care service
places in the coming few years
• Continue to work
with universities • Rehabilitation services: increase the
to upgrade and number of places for on-site pre-school
increase healthcare-related rehabilitation services to 10 000
teaching facilities in 2022/23 school year
• Commence operation of 2 District
Health Centres in the coming two
years, and set up “DHC Expresses” in
another 11 districts within this year
• Press ahead with implementing the first • Inject $1.1 billion into
10-year Hospital Development Plan Lotteries Fund to ensure
(HDP) and the planning of the second that feasibility studies for much-needed
10-year HDP social welfare development projects
can proceed as scheduled• Examine the feasibility of rezoning
5 commercial sites in Kowloon
East for residential use, which are
expected to provide about 5 800
private housing units in total
• Review about 40 “Government,
• Potential land supply of 2021-22 Land Institution or Community” sites with
Sale Programme, railway property joint use potential and put forward
development projects and private development proposals this year
development/redevelopment projects
expected to provide about 16 500 • Introduce a pilot scheme in this quarter
units. Another 3 commercial sites for charging land premium at “standard
estimated to provide floor area of about rates” to encourage redevelopment of
480 000 sqm industrial buildings
• New development area projects and
other development projects under
planning expected to provide a total of Housing Supply
over 860 hectares of brownfield sites • Public housing: Estimated production
in the New Territories which can be in the five-year period from 2020-21
redeveloped for housing and other land is about 101 400 units, comprising
use over 70 000 public rental housing/
Green Form Subsidised Home
Ownership Scheme units, and over
30 000 subsidised sale units
• Private housing: Estimated average
annual production in the five-year
period from 2021 is more than
18 000 units
Land and
Housing2021-22
Total government revenue $591.1B
The above revenue items have not included the estimated proceeds from issuance of green bonds amounting to $35.1 billion in 2021-22.Total government expenditure $727.8B
Eco
n om
9.6 %
Recurrent y
EXPENDITURE
$517.6B
• 2020-21 financial year:
Estimated deficit of $257.6 billion Facing the Challenge
• 2021-22 financial year: Estimated
deficit of $101.6 billion, equivalent Reduce Expenditure
to 3.6% of GDP, mainly due to
• Zero growth in
counter-cyclical fiscal measures and
the civil service
continued increase in recurrent
establishment in 2021-22
expenditure
• Trim government recurrent
• 2022-23 to 2025-26 financial years:
expenditure by 1% in 2022-23 without
Deficit for four consecutive years is
affecting livelihood-related spending.
expected, mainly due to rises in
About $3.9 billion savings is expected
government expenditure outpacing
increases in government revenue
(especially recurrent expenditure) Increase Revenue
• Government expenditure should enter • Raise the rate of Stamp Duty on Stock
a consolidation period. Long-term Transfers, from the current 0.1% to
financial commitments should 0.13% of the consideration or value
be commensurate with the of each transaction payable by buyers
increase in revenue and sellers respectively
• Maintain the development and • Not the appropriate time to revise rates
vibrancy of our economy, and of profits tax and salaries tax.
identify new areas of growth Government to continue reviewing and
for increasing revenue make adjustments at a suitable time
• Issue green bonds to • Not the appropriate
fund green projects and time to introduce new
BOND increase Government’s taxes. Government will
fiscal space carry out related
research and make
• Review the rating system preparation for
to explore room for discussion and
improvement consensus-building at a
suitable time
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