The Hong Kong government on Wednesday announced 10,000-Hong Kong-dollar (1,280-US-dollar) handouts to adult permanent residents in a bid to tackle the city’s economic downturn.
Financial Secretary Paul Chan said in his speech announcing his 120-billion-Hong Kong-dollar-budget (23.4 billion US dollars) for 2020-2021 that “decisive measures” must be implemented to tackle the city’s economic woes.
These were partly brought on by the coronavirus outbreak and anti-government protests in the city.
Chan said he decided to disburse the 10,000-dollar payments “with a view to encouraging and boosting local consumption on the one hand, and relieving people’s financial burden on the other.”
The move, benefiting about seven million people 18 and over, will cost the government 71 billion dollars.
Hong Kong’s economy has been dealt a double blow, with over six months of anti-government protests against a now withdrawn extradition bill, and the coronavirus epidemic.
The health crisis caused public anger over the lack of available protective face masks and then panic buying of essential items such as toilet paper, rice and tinned goods.
Chan forecast a budget deficit of about 37.8 billion dollars for the 2019-20 financial year, rising to about 139.1 billion in 2020-21, according to a government statement.
“Although a record high deficit is envisaged in next year’s budget, I believe that only with such a budget can we help our community and local enterprises ride out their difficulties,” Chan said.
