Hong Kong budget 2026-27: ‘sweeteners’ for grass roots or the middle class?

South China Morning PostEN 1 min read 100% complete by Matthew ChengFebruary 21, 2026 at 01:30 AM

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Hong Kong's improved fiscal outlook, including an operating account surplus projected for the 2025-2026 financial year, has fueled debate over potential "sweeteners" in the upcoming 2026-2027 budget. While cross-party groups are advocating for tax relief for the middle class, economists suggest targeted spending is more effective. Concern groups are also lobbying for specific support for grass-roots residents, particularly the unemployed. The government previously reduced one-off support measures in 2025, prompting calls for increased financial assistance in the new budget. The finance chief, Paul Chan Mo-po, has acknowledged the improved financial position, setting the stage for decisions on how to allocate the surplus.

Key Entities & Roles

Key Player Opposition Context

Paul Chan Mo-po ×270% Hong Kong Government ×280% Hong Kong ×490%

Keywords

hong kong budget 100% sweeteners 90% operating account surplus 80% middle class 70% fiscal position 70% grass roots 70% tax relief 60% targeted spending 60% public finances 50% economic policy 40%