In his speech on the new budget, Financial Secretary John Tsang says Hong Kong sustained a state of full employment last year, but its economic growth slowed to 2.3 per cent, below the 3.9 percent annual average over the past decade.
John Tsang says this year will be challenging for Hong Kong, with the forecast for economic growth coming in between 1 and 3 percent.
"The global economy as a whole is likely to stay on a slow-growing path in the post-financial tsunami period. This, amid a stronger US dollar, will continue to put a drag on Hong Kong's trade performance. Domestically, local consumption and investment sentiment will be dampened by the increased uncertainties over the US interest rate hike and weaker spending power of inbound visitors."
He also says that prolonged political bickering is detrimental to public administration and the international image of Hong Kong as a stable, law-abiding and efficient city.
"The Occupy movement affected tourism, hotels, catering, retail and transport industries, etc. to varying degrees. To offset the impact on economic confidence, I shall implement an array of support measures targeting affected industries and launch a new round of efforts to promote Hong Kong."
That includes the exemption of license fees for travel agents, hotels, and restaurants for six months.
Also, more than 100 million HK dollars, or nearly 13 million U.S. dollars, will be set aside to launch various promotional campaigns around the globe.
The Secretary also hopes the public can narrow differences and pursue consensus with patience and pragmatism.
"Diversity, openness, peace and freedom are not only our core values, but also the foundations of our success, and the most reliable co-ordinates of our development path. If we can firmly grasp these fundamentals, we shall be more confident charting our way forward."
The Budget has announced 34 billion HK dollars in relief measures, including reduction in salaries tax, increase in child allowance, and more money for the elderly.
Chief Executive CY Leung has made a statement, saying he is supportive of this year's budget blueprint which is in line with the government's policies. At the same time, he urges lawmakers not to filibuster the budget debate at the Legislative Council.
For CRI, this is Li Jing in Hong Kong.
