Estimated consolidated fiscal position

In Hong Kong dollars

Estimated consolidated fiscal position

2023-2024 government revenue and expenditure (estimated)

Total government revenue for 2023-24 is estimated to be HKD 642.4 billion (2022-23: HKD 603.8 billion) within which tax revenues (i.e., Profits Tax, Stamp Duty, Salaries Tax) account for 52.6%, followed by land premiums at 13.2% and investment income at 10.4%. Total government expenditure is estimated at HKD 761.0 billion (2022-23: HKD 809.6 billion). Education, social welfare and healthcare account for about 48.5% of total government expenditure. The government forecasts an overall consolidated deficit of HKD 54.4 billion for 2023-24. This has taken into account the new sources of revenue, including the annual special football betting duty to be collected from the Hong Kong Jockey Club and the issuance of government bonds. Hong Kong’s fiscal reserves are predicted to remain healthy at about HKD 762.9 billion as at 31 March 2024. Fiscal reserves are estimated to stand at HKD 983.7 billion by the end of March 2028, which is equivalent to roughly 14 months of government expenditure.

Expenditure (estimated)

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Estimated expenditure for 2023-2024 HKD 761 billion
Revised estimated expenditure for 2022-2023 HKD 809.6 billion

Source: 2023-2024 Budget Speech, HKSAR Government

Revenue (estimated)

Estimated revenue for 2023-2024 HKD 642.4 billion
Revised estimated revenue for 2022-2023 HKD 603.8 billion

Real gross domestic product growth rate

Overall, the Hong Kong economy showed a contraction of 3.5% year-on-year, predominantly as a result of domestic outbreak of the fifth wave of the epidemic and deterioration in the external environment last year. Nevertheless, with the relaxation of most of the local pandemic measures and the lifting of cross-boundary restrictions, a solid recovery in the performance of Hong Kong’s catering, retail and tourism sectors is expected and the economic outlook for 2023 stays positive. With timely targeted measures rolled out by the government supported by healthy fiscal reserves, Hong Kong’s economy remains resilient and capable of weathering any economic headwinds.

Source: Census and Statistics Department, HKSAR Government

Underlying inflation rate

The underlying inflation rate in 2022 is estimated to be 1.7%, up 1.1 percentage point from the year before. Looking ahead, the inflation outlook for 2023 will be heavily influenced by the recovery in domestic economic activity and the pace of the global economic recovery. The inflation pressure in Hong Kong should remain moderate in overall terms. There have been signs of recovery in the local economy and the growing momentum is expected to continue in the foreseeable future.

Source: Census and Statistics Department, HKSAR Government

Unemployment rate

The unemployment rate in Hong Kong for the period from November 2022 to January 2023 was 3.4%. Looking ahead, the unemployment rate will largely depend on the recovery in the economy after the relaxation of pandemic measures and other restrictions on local economic activities.

Source: Census and Statistics Department, HKSAR Government