Budget 2025 Key Takeaways: Balance public expenditure and maintain Hong Kong’s competitiveness

Hong Kong’s Financial Secretary Paul Chan Mo-po delivered the 2025-2026 Budget speech on Wednesday. He said that “strictly containing public expenditure is a must” and it is crucial to strive for a balance among restoring fiscal balance and lowering potential impacts that may arise.

For the coming fiscal year, the total government expenditure will increase by about 8.9% to HK$822.3 billion, while the total government revenue is estimated to be HK$659.4 billion. Chan expects that there will be a deficit of HK$67 billion for the year, and fiscal reserves will decrease to HK$580.3 billion.

Here are the key takeaways of this year’s budget plan.