After celebrating its surplus, Hong Kong must work on sustaining it

South China Morning PostEN 1 min read 100% complete by Kenny Shui,Pascal Siu,Katie HoFebruary 28, 2026 at 02:30 AM

AI Summary

short article 1 min

Hong Kong's operating account has returned to profit, resulting in a HK$2.9 billion surplus for 2025/26 due to a strong stock market and property sector. This allows the government to increase tax allowances for the first time since 2016/17, including a 10% increase to basic and married person's allowances. The one-off tax reduction ceiling has doubled to HK$3,000, and child allowances have increased to HK$140,000 to encourage higher fertility rates. While the surplus provides short-term relief, the article emphasizes the need to address deeper structural issues affecting Hong Kong's long-term public finances. The tax allowance adjustments are viewed as investments in social stability.

Key Entities & Roles

Key Player Opposition Context

Government of Hong Kong ×270% Hong Kong 90%

Keywords

fiscal surplus 90% tax allowances 80% economic stability 70% public finances 60% fertility rate 50% investment income 50% inflation 40% stamp duty 40%