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Author: Mrs. Yvonne Law, National Chief Knowledge Officer & Tax Partner and the Hong Kong Budget Team
The 2006-2007 HKSAR Budget can best be characterised as conservative and cautious, safe and steady, with no drastic new measures. The Hong Kong Government's goal of containing expenditure to 18% of GDP or lower is to be applauded. However, the Financial Secretary's forecasts of the medium-term surplus estimates, based on a sustainable nominal GDP growth of 5 per cent to 6 per cent over the period of 2006 to 2011, may be on the optimistic side. Meeting the surplus forecast will be a real challenge for the Financial Secretary. Learn more in our 2006 - 2007 budget analysis attached below.
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