Prudent Fiscal Management

Professor Liu Pak-wai (Professor of Economics, CUHK): Everyone knows that the diligence and flexibility of our people, an open market and the rule of law are the major factors contributing to Hong Kong's competitiveness and economic success.

Likewise, sound public finance policies have been a cornerstone of Hong Kong's economic system. Just as households have to properly manage their finances so they do not spend more than they earn, society as a whole has an even greater responsibility to uphold our long-standing principle of prudent financial management.

We have to control expenditure and spend taxes prudently so taxpayers will not have to shoulder a great burden in future. By doing so, we will be able to provide an environment for the public to continue their hard work and for investors to invest comfortably. All this will help Hong Kong's economy to continue to enjoy steady growth.