Budget: Driving High-Quality, Inclusive Growth with Innovation and Finance
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Mr Chan proposed a series of measures to drive innovation and technology development, including establishing the Committee on AI+ and Industry Development Strategy; taking forward the Sandy Ridge data facility cluster project; promoting AI training; and accelerating digital intelligence transformation of the Government. He noted that Hong Kong is pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all. Moreover, the International Clinical Trial Academy will also be established to help enable the Mainland's biomedicine technology to go global, attract foreign investment, and help develop Hong Kong into an international health and medical innovation hub.
To facilitate the development of new industrialisation, the Budget has earmarked resources for establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland, and the New Industrialisation Elite Enterprises Nurturing Scheme will be launched. The Government will promote the full integration of technological innovation and industrial innovation through key infrastructure, including the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and San Tin Technopole.
On finance, Hong Kong will proactively align with national development strategies, advance the internationalisation of the Renminbi, and continuously reform the securities market. The Government will legislate this year to enhance tax regimes for family offices and funds, as well as establish licensing regimes for digital asset dealing and custodian service providers. On tourism promotion, to support "tourism is everywhere" and promote "urban-rural integration", the Government will launch the Northern Metropolis Urban-rural Integration Fund as a pilot scheme to encourage the introduction of rural tourism projects.
Regarding land supply, Mr Chan said that specific land sale arrangements will be announced on a quarterly basis after careful consideration of market conditions and other relevant circumstances, for the steady development of the market. In view of the vacancy rate in the non-residential property market, and considering supply and demand, the Government will not put up general commercial sites for sale in the coming year.
On public finances, Mr Chan noted that tax revenue has increased over the past year, as a result of the booming economy and capital market. Coupled with the reinforced fiscal consolidation programme gradually bearing fruit, public finances have improved sooner than expected. In 2025-26, the Operating Account will return to a surplus ahead of schedule, while the Consolidated Account will be broadly balanced after taking into account the net proceeds from bond issuance. The Government will continue to strictly contain the growth of its operating expenditure and take forward the Productivity Enhancement Programme as planned. Moreover, to relieve the economic pressure faced by the people, the Budget proposes increasing the basic allowance, the single parent allowance, the married person's allowance, the child allowance, the allowance for maintaining a dependent parent or grandparent, and the deduction ceiling for elderly residential care expenses starting from the year of assessment 2026/27.
In conclusion, Mr Chan said that the global environment has remained volatile over the past year, and Hong Kong has continued to undergo economic transformation. Technological innovation, in particular the development of AI, has brought a mix of opportunities and challenges. Yet, Hong Kong has always thrived amid changes and progressed through innovation. While transformation is ongoing, the economy has recalibrated its course and is advancing steadily. Hong Kong must make full use of its strengths and leverage the resolute support of the country to speed up and scale up economic development sustainably, creating better development opportunities for the people and enhancing their quality of life.
For more details on the 2026-27 Budget, click here.
Ends/Wednesday, February 25, 2026
Issued at HKT 13:20
Issued at HKT 13:20
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