Hong Kong plans HK$101.6 bln budget deficit in 2021/22 fiscal year

Hong Kong expects a budget deficit of HK$101.6 billion ($13.10 billion) for the 2021/22 fiscal year, Finance Secretary Paul Chan said on Wednesday.

Pandemic relief measures, including cash handouts to residents and tax breaks and other benefits to businesses, left the city with a much deeper deficit last year than the initially planned HK$139.1 billion.

Hong Kong usually runs balanced budgets or surpluses, since its pegged currency system commits it to fiscal prudence. ($1 = 7.7543 Hong Kong dollars)