Hong Kong Budget 2026-27
Deloitte’s post-Budget commentary
The Financial Secretary of the Hong Kong Special Administrative Region (HKSAR), Paul Chan Mo-po, delivered the 2026-27 Budget Speech on 25 February 2026. This is the fourth budget he has presented under the current-term Government led by HKSAR Chief Executive John Lee Ka-chiu.
Our coverage includes a commentary and analysis in response to the Budget prepared by the Deloitte Hong Kong Budget Team, led by Ms. Polly Wan, Lead Partner of Hong Kong Budget Team of Deloitte China, and a summary highlighting the key proposals.
Budget Briefings
On 26 February 2026, Deloitte China hosted "2026-27 Hong Kong Budget Briefing: Analysing Fiscal Strategies and Economic Implications," an exclusive breakfast event for business executives and industry leaders to explore the far-reaching impact and opportunities of the Budget's new measures.
With the National 15th Five-Year Plan underway, the 2026-27 Hong Kong Budget charts a clear course for economic transformation—underpinned by sound public finances and a sharpened focus on innovation & technology and financial measures.
At the briefing, our speakers shared their valuable insights on the Budget and its implications:
- Our Guest of Honour and keynote speaker—Professor Billy Mak Sui-choi, MH, associate professor of the Department of Accountancy, Economics and Finance at Hong Kong Baptist University—for his insightful perspectives on financial policy and market analysis.
- Deloitte China Southern Region Managing Partner Edward Au delivered the opening remarks and Budget overview, noting Hong Kong's economy is showing a strong recovery trajectory.
- Deloitte China Hong Kong Tax & Business Advisory Leader Anthony Lau provided an in-depth analysis of the tax policy highlights.
- In a panel discussion, Professor Mak joined Edward, Anthony and Deloitte China Hong Kong Government & Public Services Industry Leader Gary Wu for a dynamic exchange on "Accelerating Economic Growth, Aligning with National Planning, and Unlocking New Diversification Opportunities". Together, they explored how the Budget empowers businesses to seize opportunities amid a shifting global landscape.
Hong Kong is upgrading its longstanding pillar industries while cultivating new growth engines. The Budget’s strategic measures are set to create far-reaching opportunities for businesses ready to embrace change.
Budget Highlights
Budget Commentary
The Financial Secretary of the Hong Kong Special Administrative Region (HKSAR), Paul Chan Mo-po, delivered the 2026-27 Budget Speech today, outlining the fiscal policy shaped by a complex yet gradually improving economic environment. This marks the fourth budget he has presented under the current-term Government led by HKSAR Chief Executive John Lee Ka-chiu. Against a backdrop of modest recovery and persistent global challenges, the Budget strikes a balance between fiscal stability and longterm economic transformation.
The Financial Secretary announced a HKD2.9 billion fiscal surplus for the 2025-26 financial year (FY2025-26), representing a significant turnaround from the deficit of HKD80.3 billion in FY2024-25 and a marked improvement over the initially estimated deficit of HKD67 billion in last year's Budget Speech. The stronger-than-expected outcome was driven by robust capital market performance, which led to a significant uplift in stamp duty revenue. With fiscal reserves expected to stand at HKD657.2 billion as of 31 March 2026, the government is now better positioned to invest in key growth drivers to enhance Hong Kong’s economic resilience and competitiveness.
Under the expectation that Hong Kong’s economy will sustain its positive momentum, this year’s Budget reflects a careful balance between safeguarding fiscal stability and advancing priorities that support inclusive and sustainable growth. Resources are efficiently directed toward essential public services such as education, healthcare, and social welfare, while also promoting innovation, strengthening infrastructure, and encouraging economic diversification.
This article examines the tax-related initiatives announced and assesses their implications for individuals and businesses.
Press Release
The 2026–27 Budget: Integrating financial and innovative growth for diversified economic development
Deloitte China welcomes the 2026–27 Budget delivered by the Financial Secretary, with the theme "Driving High-quality, Inclusive Growth with Innovation and Finance." Building on Hong Kong's good economic momentum, this year's Budget introduces measures to advance emerging sectors and reinforce traditional industries, thereby attracting enterprises, capital and talent to fuel the next wave of growth.
Learn more:[English version][Simple Chinese version]
Media coverage
