Financial Secretary Paul Chan has unveiled plans to significantly enhance capital works expenditure, signaling a major push for infrastructure development. The government's commitment to advancing critical projects will see an increase in annual spending from the earlier projected $90 billion to approximately $120 billion. This substantial rise aims to ensure that vital infrastructure initiatives remain on track and are completed efficiently. To support this ambitious financial strategy, Hong Kong will tap into various market resources, including public-private partnerships, land exchanges, and large-scale land disposals. Moreover, the issuance of government bonds will play a crucial role in providing stable funding for these expansive projects.

The bond issuance strategy spans over the next five fiscal years, from 2025-26 to 2029-30, during which the government intends to issue between $150 billion and $195 billion annually. A significant portion of these funds, around 56%, will be allocated to refinancing short-term debts, ensuring the government maintains its liquidity while continuing robust investments in large-scale projects. To accommodate this financing approach, the borrowing ceiling for these bond programs will be raised from $500 billion to $700 billion under the Medium Range Forecast. Despite the increased borrowing, Mr. Chan assured that Hong Kong’s government debt-to-GDP ratio will stay within a healthy range of 12% to 16.5%, well below that of many advanced economies.

These strategic financial measures underscore the government's dedication to fostering sustainable development. By strictly channeling bond proceeds into essential sectors such as transportation, housing, and public facilities, rather than recurrent expenditures, the administration aims to build a resilient and prosperous future for Hong Kong. This forward-looking approach not only bolsters economic stability but also enhances the quality of life for residents, demonstrating a commitment to long-term growth and societal progress.