Long-term gains worthwhile, Paul Chan says as Hongkongers slam lack of budget sweeteners
South China Morning Post
by Edith LinFebruary 26, 2026
AI-Generated Deep Dive Summary
Hong Kong’s Financial Secretary Paul Chan Mo-po has faced public criticism over his recent budget proposal, which notably lacks direct cash handouts or “sweeteners” for residents. In defense, Chan emphasized the importance of long-term financial planning and infrastructure investments for the city’s sustainable development. He stressed that while immediate giveaways might be popular, they could undermine the government’s ability to invest in critical projects that will benefit Hong Kong over the years.
Chan highlighted a significant allocation of HK$150 billion (US$19.2 billion) from the Exchange Fund to support major infrastructure initiatives. This funding is intended to underpin key projects aimed at improving housing, transportation, and public services. The Financial Secretary also noted that he would soon brief international financial institutions, including credit-rating agencies and the International Monetary Fund, on the budget’s details, underscoring the government’s commitment to transparency and accountability.
Critics argue that the lack of immediate financial relief measures in the budget has disappointed many Hongkongers, who were hoping for cash handouts or other short-term benefits. However, Chan maintains that such an approach would compromise the city’s fiscal stability and limit resources available for long-term investments. He argued that prioritizing infrastructure development and sustainable growth is essential for safeguarding Hong Kong’s future prosperity.
The debate over the budget reflects broader tensions between immediate gratification and long-term planning in governance. While public expectations for quick fixes are understandable, Chan’s stance highlights the need to balance short-term demands with strategic financial management. This approach could set a precedent for future budgets, encouraging a focus on sustainable development rather than reactive spending.
Ultimately, the Financial Secretary’s defense of the budget underscores the importance of careful fiscal planning in maintaining economic stability and fostering long-term growth. By prioritizing infrastructure investments, Chan aims to address Hong Kong’s pressing challenges while ensuring the city remains financially resilient in the face of global economic uncertainties.
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Originally published on South China Morning Post on 2/26/2026