Budget Preview: Govt may issue more bonds for mega projects, experts warn of credit rating risks
發佈日期: 2026-02-19 20:11
TVB News
This year's Budget will be unveiled on February 25th.
With multiple major projects in the pipeline, the government has said it will issue bonds to support infrastructure development.
An academic warns that the upper limit of government borrowing should not exceed 60 percent of GDP, or it could risk affecting Hong Kong's international credit rating.
The Northern Metropolis is widely seen as Hong Kong's new engine of growth.
But developing an area that accounts for one-third of the city's land mass could bring enormous financial pressure.
Combined with other infrastructure projects, annual capital works expenditure is expected to average around 120 billion dollars.
Financial Secretary Paul Chan has said the capital account will remain in the red in this financial year, and the government will issue bonds moderately to fund infrastructure development.
As of last March, about 105.2 billion dollars worth of infrastructure bonds had already been issued.
Under the current programme, 20 projects are covered.
Half of them are located in the Northern Metropolis.
Lawmaker Mark Chong for the Northwestern New Territories constituency says bond issuance could prioritise transport-related infrastructure as connectivity helps foster development.
Professor Terence Chong, Associate Professor of the Department of Economics at the Chinese University of Hong Kong says Hong Kong's borrowing ceiling should set below 60 percent of GDP.
If the interest rate is about three percent, that would mean paying 60 billion dollars in interest annually -- equivalent to the total revenue from salaries tax.
He explains if the limit is increased too sharply at once, international credit rating agencies may downgrade Hong Kong immediately as investors would worry whether Hong Kong have the ability to repay.
