HK Government proposed transfers from the Exchange Fund

Financial Secretary Paul Chan said the economic outlook for the next few years remain bright, so such allocations will not be a regular occurrence.

The Budget introduced several measures aimed at accelerating the development of the Northern Metropolis. To cope with the massive construction and development costs, the Exchange Fund will be used again after 42 years with a total of 150 billion dollars being transferred over a two-year period for infrastructure development.

He added that the government is reducing increase in its expenditures while adding revenue appropriately. In previous years, Hong Kong government’s revenue mainly relied on land sales but its finances will be supported by various revenue streams and not solely on land sales.