• 2011 (116)
  • 2010 (60)
  • Facebook Image
    Democratic and Reform Resources Centre, Powered by Joomla!
    3 Mar 2011 列印 E-mail

    Category

    Public Finance

    Issue

    • 2011- 2012 Budget

    News Content

    • Bowing to growing political pressure, Financial Secretary John Tsang announced yesterday to give HK$6,000 cash handouts to all Hong Kong’s adult permanent residents. Besides, salaried taxpayer will also get up to 75% tax reductions capped at HK$6,000. The relief measures would then go up to HK$40 billion.
    • But Tsang refused to apologize to the public for the change he was forced to make.
    • Although Tsang’s quick move has won the support of the pro-establishment legislators, the pan-Democrats still oppose it, threatening to hold their scheduled protest on Sunday.

    Questions

    • It is yet to know how and when the handout will be distributed.
    • The plan is not a program for all. The new immigrants, the foreign domestic helper and the expatriate non-permanent residents were not entitled to have the handout.
    • It is short-sighted. FS did it because of the political pressure. He does not want his budget to be vetoed by the legislative Council. It fails to solve the social problems. Instead of distributing cash handouts, the government can use the HK$36billion giveaways to develop the universal pension.