HK seen posting budget surplus of up to HK$75b

Hong Kong

ANALYSTS have forecast that the Hong Kong government, in its upcoming budget this Wednesday, will report a surplus in the range of HK$70 billion (S$12.8 billion) to HK$75 billion for the fiscal year of 2016-2017, far outstripping the government's HK$11.4 billion estimate.

This would likely be due to higher revenues from land sales and stamp duties.

"We estimate that the land premiums for the financial year 2016-17 will reach a record level of HK$104 billion, exceeding the original estimate by HK$37 billion," Agnes Chan, EY's Hong Kong & Macau managing partner, told The Business Times.

"This is due to the high volume of turnover and prices following the government's increase in land supply with a view to rein in runaway property price…