I personally have no interest to write more on the Government Budget.
But this morning, the government decided to give HK$6,000 to each citizen above 18 year olds, provide 75% income-tax rebate (max HK$6,000), and withdraw the proposal to inject HK$6,000 into each mandatory provident fund (MPF) account.
This is quite simply a suicide for the government. In the first place, the problems of the Budget, in my view, wasn’t that the government should distribute money, but that there is no vision, no long-term focus, and ignore the problems of Hong Kong. By rejecting public demand to distribute money and then yielding to public demand within just a week, the government is hurting their own credibility.
The government has been failed in so many respects. The fact that the Hong Kong government manages to create crisis after crisis is an achievement. The government has very little credibility to start with, and now it is committing suicide by demonstrating how public demand can force the government to do what the public want, however right or wrong it can be.
This article originally appeared here: Hong Kong: Changes To The Budget 2011-12
Also sprach Analyst – World & China Economy, Global Finance, Real Estate
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