According to Al Jazeera, Finance Secretary Paul Chan said he expected budget deficits for the next five years.
Hong Kong's 2019-2020 fiscal budget included $3.85 billion from protests with confrontations between demonstrators and police in public spaces and $3.85 billion to support health care, small to midsize businesses, and low-income residents,The one-time payments to permanent residents come during the third quarter of a recession. The recession burdens tourism and retail in the area as partial border closures slow visitors and keeps residents away from public areas, the report said.
The impact of the coronavirus on the economy has followed a similar pattern to SARS, which also contributed to a recession in Hong Kong in 2003 and 2004, according to Al Jazeera. The budget deficit is unusual for Hong Kong, which typically keeps a balanced or surplus budget. Yet, thanks to plenty of saved capital, the city should be able to navigate the tenuous period, according to the report.
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