Deficit Could Exceed Forecast

Considering that during a recession, tax and land sale revenues will fall, the Government believes it is possible this year's deficit could exceed $280 billion, Financial Secretary Paul Chan said today.

Speaking to reporters after a radio programme this morning, Mr Chan noted that the Government's new $137.5 billion relief package together with his forecast in the Budget would push the deficit higher.

"The total package of this relief measure is slightly more than $130 billion.

"When I delivered the Budget at the end of February, I had forecast a budget deficit of close to $140 billion. This, together with the recently announced measures, would bring our total deficit to close to $280 billion.

"Considering that during an economic recession, tax collection and revenues from land sale would inevitably come down, we are of the view that it would be quite possible for the deficit for this year to exceed $280 billion."