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flag Hong Kong ended 2025-26 with a HK$2.9 billion surplus, up from a projected HK$67 billion deficit, due to strong economic growth and rising revenues.

flag Hong Kong’s 2025-26 financial year ended in a HK$2.9 billion budget surplus, reversing a prior forecast of a HK$67 billion deficit, driven by strong economic growth, a booming stock market, record IPOs, and increased tourism. flag Financial Secretary Paul Chan attributed the turnaround to effective fiscal consolidation, rising tax revenues, and robust capital markets, with fiscal reserves expected to reach HK$657.2 billion by March 2026. flag The government plans to maintain fiscal discipline through civil service cuts and modest tax reliefs, while investing HK$20 billion in tech and AI development, including new innovation zones and support for RISC-V chips and IP education. flag Despite progress, challenges remain, including geopolitical tensions and concerns over the rule of law.

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