PricewaterhouseCoopers (PwC) on Monday forecast the Hong Kong Special Administrative Region (HKSAR) government will record 168 billion HK dollars (21.51 billion U.S. dollars) of consolidated budget surplus in the fiscal year 2017/18 (April 1, 2017 to March 31, 2018).
The surplus will be based on projected fiscal revenue of 621.2 billion HK dollars and expenditure of 453.2 billion HK dollars, according to the multinational professional services firm.
PwC believed higher-than-expected revenues from land sales, profits tax and stamp duty, combined with under-budget expenditure, are the main contributors to this "greater-than-predicted" surplus.
PwC expected expenditure to hit 453.2 billion HK dollars, lower than the government's original estimate of 491.4 billion HK dollars. This shows the HKSAR government has managed to maintain the principle of fiscal prudence and is committing resources only where justified.
To maintain Hong Kong's overall competitive position in doing business, PwC proposed introducing competitive profits tax policies and incentives to attract more corporations to set up their regional headquarters in Hong Kong.