Hong Kong – Hong Kong (AP) – Hong Kong It will reduce thousands of civil service jobs and increase artificial intelligence spending, as it seeks to address an increasing deficit, authorities said Wednesday.
The Secretary of Finance, Paul Chan, said during a budgetary discourse that there would be a “cumulative reduction” of the recurring expenditure of the Government by 7% from now to 2027-2028. The Hong Kong deficit had reached $ 87.2 billion of Hong Kong ($ 11.2 billion) for the financial year of 2024-2025, which makes it the third consecutive year of losses.
“It gives us a clear path to the objective of restoring the fiscal balance,” Chan said.
He said that 10,000 officials would be reduced in April 2027, which represents a reduction of approximately 2% of the civil service in each of the next two years. Salaries will also freeze in the civil service this year.
Chan also said that up to $ 195 billion in Hong Kong ($ 25 billion) in bonds will also be issued in the next five years to ensure progress of important infrastructure projects, with more than half to refinance the debt to term.
To increase revenues, Hong Kong will also increase its departure tax of the Airport of 120 dollars from Hong Kong ($ 15.50) to 200 dollars from Hong Kong ($ 25.70) of the third quarter of the year, which represents an increase of 67%.
Separately, Hong Kong will also give an impulse to artificial intelligence by taking advantage of the “internationalized characteristic of the city to develop Hong Kong in an international exchange and cooperation center for the AI industry.”
The authorities have also allocated Hong Kong dollars of $ 1 billion for an AI Research and Development Institute, and will establish an innovation and technology fund of $ 10 billion ($ 1.29 billion) to invest in “Industrias emerging and future strategic importance. “
Hong Kong’s finances have been affected by a weak real estate sector, such as The prices of sunken homes About 30% in the last three years. It is also dealing with economic uncertainty and geopolitical tensions as relations between the United States and China deteriorate.
The number of land premiums paid by developers to the government has decreased, harming Hong Kong’s income. Land sales generally constituted approximately a fifth of government income, but this has fallen by just over 5% in the last fiscal year.
Hong Kong fiscal reserves will be reduced from 12% of $ 734.5 billion dollars from Hong Kong ($ 94.5 billion) to approximately $ 647.3 billion dollars from Hong Kong ($ 83.3 billion) at the end of March, and An additional 10% in 2025-26, Chan said.
