Hong Kong has announced a $21.8 billion budget to support the semi-autonomous Chinese city’s economy as it continues to battle a new wave of Covid.
This is the fifth wave of Covid that has hit Hong Kong, with daily cases soaring to new record levels. The announcement of funds comes a day after the government said that virus control measures will be extended until April 20.
Financial Secretary Paul Chan said during his budget speech that he earmarked the large sum for potential anti-endemic needs and that the government will support the fight against Covid if more resources are required.
The measures include consumption vouchers, a 100 percent reduction in both salary tax and profit tax, subsidies for the temporarily unemployed, and rental waivers for businesses that have been forced to close due to Covid rules.
Money has also been earmarked for “anti-endemic” measures, including an increase in testing, the supply of more test kits, and providing support to hospitals. More vaccinations have also been purchased in order to provide booster shots.
On Wednesday alone, the city reported nearly 9,000 new cases. A full lockdown was ruled out last week, but authorities kept with China’s zero-Covid policy.
Chan said that the new wave has delivered with it a severe blow to many people, and has disrupted their lives as well as their work. He called it a critical time and said therefore there need to be more direct resources in order to relieve the population’s hardships and provide the ability for the economy to stabilize.
Hong Kong had a hard two years, with two consecutive years of decline in the overall economy. There was a “visible recovery” in 2021 with a growth of 6.4 percent, and the government hopes that 2022 will include growth of two to four percent. But experts say this could be an optimistic view, especially with another wave of Covid.
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