Chan has beforehand projected a finances deficit exceeding HK$100 billion for Hong Kong’s present monetary yr, nearly twice the HK$56.3 billion estimated in his finances speech in February.
The federal government’s monetary reserves may additionally fall to about HK$800 billion, equal to 11 months of presidency spending.
However legislative council members have additionally urged Chan to introduce extra monetary reduction measures, together with saying a brand new spherical of vouchers throughout his finances session subsequent February.
“Individuals have expectations for consumption vouchers or different subsidies, however the authorities is in a troublesome fiscal place and desires to train prudence. How will the finance secretary stability the totally different expectations and priorities?” requested lawmaker Chan Kin-por, chairman of the council’s finance committee.
“In fact, the federal government can not please everybody, so it must handle expectations.”
Lawmaker Elizabeth Quat additionally requested if a brand new spherical of vouchers could be issued subsequent yr to spice up the financial system.
In response, Chan agreed the federal government was in a troublesome fiscal place and would take heed to views in a “humble method”.
He highlighted earlier research that confirmed the vouchers labored in stimulating the financial system, noting that individuals spend an additional HK$4,000 to HK$6,000 together with their vouchers.
“Consumption vouchers have labored in boosting the financial system … however they value some huge cash,” Chan stated.
“We’re simply beginning the finances consultations, we are going to hear from varied sectors of the neighborhood and monitor the financial system earlier than figuring out the right way to proceed.”
Some 6.3 million folks, together with new residents and arrivals from mainland China, are eligible for as much as HK$10,000 beneath the consumption voucher scheme.
Authorities started handing out the second batch of HK$5,000 in August after the primary spherical of the identical quantity was distributed in April. An instalment of HK$2,000 was handed out that month, adopted by HK$3,000 in October.
Hong Kong has downgraded its full-year financial forecast from between 0.5 per cent progress and 0.5 per cent contraction to a 3.2 per cent drop amid a recession, citing a deteriorating exterior atmosphere and the Covid-19 pandemic.
The gross home product (GDP) fell by 4.5 per cent within the third quarter from a yr earlier, following a 1.3 per cent decline within the earlier three months.
The GDP for the primary three quarters as an entire dropped by 3.3 per cent in contrast with the earlier yr.