Hong Kong pairs massive police budget boost with HK$10,000 cash handout
Financial Secretary Paul Chan (Image courtesy to inmediahk.net)
Written by: Justin Lam
Hong Kong’s financial secretary Paul Chan announced budget plans for a HK$10,000 handout for all permanent residents over the age of 18 of the city, simultaneously planning to increase HK$25.8 billion in expenditures for police equipment on Feb. 26.
The Pro-democracy party requested that the Legislative Council of Hong Kong to split the budget into two and urged Chan to handout the money as soon as possible.
Chan appeared and responded to the Finance Committee of the Legislative Council of Hong Kong on Feb. 27. When asked by legislator Eddie Chu, if Chan had the power to separate the budget into two, Chan said: “Even if I had the power to do so, I would not use it,” according to inmediahk.net.
The founder of People Power Raymond Chan rebutted and said: “Are you going to hand out cash while beating the residents?”
However, Paul Chan said: “It is necessary to strengthen the police force. There is no need to separate the budget,” according to inmediahk.net.
The purpose for the cash handout
The second half of 2019 marked Hong Kong’s first economic deficit in 15 years due to the influence of the continuous protests, trade war between the US and China and the more recent coronavirus outbreak.
The estimated expenditure for the cash handout motion was around HK$71 billion.
The announcement was a ploy to encourage local consumption in an attempt to save the economy and as part of relief measures.
In theory, this seemed like a step in the right direction. However, Chan’s firm decision to prioritize in strengthening the police force contradicted his aim to boost the economy.
Diminishing fiscals
"2020/21estimated financial deficit reaches HKD139.1 billion, breaking historical record" (Picture courtesy of Standnews)
Chan forecasted that Hong Kong will suffer a HK$139 billion financial deficit next year, according to Hong Kong Free Press.
Despite the continuous increase of the deficit, Chan reinforces that increasing police expenditures was necessary.
Police expenditures in 2019 had already exceeded the original budget by HK$3.6 billion, reaching HK$23.6 billion according to Standnews.
The cash handout being tied with a further increase in expenditure for the police force left residents perplexed.
Permanent residents of Hong Kong can apply for the cash handout online as long as they meet the listed requirements.
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