Larger deficit expected this year: Paul Chan
Financial Secretary Paul Chan said on Thursday that the measures outlined in the latest Policy Address will amount to several billion Hong Kong dollars.  Speaking at a press briefing, Chan said he’s anticipating a higher than expected deficit for the current fiscal year, due to an increase in government expenditure and a drop in revenue from land sales and stamp duty.  Asked which measure in the Policy Address will be the most expensive, the finance minister said that will depend on a number of factors. "As to which one would be the most expensive item, it really depends on a number of different factors which sometimes [are] really difficult to estimate with certainty, for example the number of newborn babies" he said.  "But I would say if the newborn baby bonus is the most popular spending, the largest sum of money, it would be money happily spent." Chan said he's not too worried about short-term economic fluctuations, as Hong Kong – being a small open economy – is bound to be affected by the external environment.  He stressed that one major area of focus in the policy blueprint is to attract foreign firms to set up offices in Hong Kong.  That, coupled with an influx of talent, will give the SAR’s economy a major boost in the long run, he said.