HK budget: first step on a bumpy road to GST

20032004 Budget Highlights

Economic Indicators

• 2.3% increase in GDP in 20022003. A 3% increase in GDP is forecast for 20032004. Medium term growth forecast is also estimated to be 3%.
• A consolidated budget deficit of HK$70 billion forecasted for 20022003 as compared with a deficit of HK$45.2 billion announced this time last year for the same period.
• Deflation for 20022003 of 3%, with 1.5% forecasted deflation for 20032004.
• A consolidated budget surplus of HK$8.4 billion forecasted for 20072008. At the end of 20072008, the Government is projected to have fiscal reserves of around...