Financial Secretary Paul Chan on Sunday said the government will rely more on long-term capital for infrastructure development in the SAR, including the Northern Metropolis. Speaking on a radio programme, Chan revealed that the government's recurrent expenditure has gone up by HK$4 billion per year to facilitate new Policy Address measures. Authorities will continue to issue up to HK$130 billion worth of bonds a year to fund various projects. He pointed out that outstanding government bonds make up only 6 percent of Hong Kong's gross domestic product, a level which is very low compared to other parts of the world. "Hong Kong faces economic restructuring, and geopolitical uncertainties.... we need to take preventive measures, and at the same time we need to enhance development to make ourselves secure," he said. Chan also estimated the government would return to fiscal balance in about three years. One way of achieving that, he said, was to cut slash expenditure by one percent each year. On a separate note, the former development minister said authorities must continue to create land, even as the property market remains stagnant. He insisted Hong Kong must not repeat its mistake in the early 2000s, when authorities froze their land sale programme and stopped creating land in response to a market downturn. "We can better make use of the land in remote places, so prices for properties near the city centre won't be too high, when compared with remote places," he said. The financial chief's hectic schedule continues with a visit to Saudi Arabia on Monday, just days after returning from the United States. Writing on his weekly blog, Chan confirmed he will lead a delegation from the financial and innovation and technology sectors to Riyadh, with an aim to promote Hong Kong and explore business opportunities. They will attend the Future Investment Initiative conference, and witness the launch of two exchange-traded funds tracking SAR stock indices on the Saudi Exchange.
