Prudent Fiscal Policy Needed: FS

The management of public finance has to be even more prudent as government revenue may fluctuate due to the uncertain economic outlook, Financial Secretary Paul Chan said.

Speaking to reporters today, Mr Chan said the Government has been investing considerably in social welfare, public hospital expansion and education, making its expenditure higher than revenue and economic growth in recent years.

While the Government has to be more prudent in public finance management in view of the volatile economic environment, he said he has no intention to impose any spending caps.

He also noted people’s expectations on improving government services, investing for the future and diversifying Hong Kong’s economy, adding resources will be allocated when required.