Turquoise-Coloured Budget for Hong Kong

Chan walking into LegCo to deliver his budget speech

Hong Kong Financial Secretary Paul Chan Mo-po unveiled his budget today and it reflects the tough economic climate the city is in.

Chan reported the deficit is at HK$87.2 billion for financial year 2024-45, with the aim to get Hong Kong into the black by 2028-29. Meanwhile the city's reserves continue to dwindle, from HK$734.5 billion (US$94.5 billion) to HK$647.3 billion, and is expected to decrease further to HK$580.3 billion in 2025-26. 

In order to tighten the government's belt, he announced pay freezes for civil servants and cutting some 10,000 posts. That clearly reveals a very bloated operation.

Ip wearing sunglasses and leather top

Other ways to bring in more money is to charge HK$200 instead of the current HK$120 for departure tax, allow betting on basketball games through the Hong Kong Jockey Club, and to make seniors shell out more for public transportation.

The elderly have had a great time taking advantage of the HK$2 fare on most public transit, and the government has had to subsidise the rest of the fares. But now there will be a cap on 240 trips per month, and seniors will have to pay 20 percent more on those routes costing over HK$10. 

It's controversial because it's mean to take away what was a privilege for the elderly, though 240 trips is more than reasonable.  

Chan's address clocked in at one hour and 48 minutes, and some lawmakers lost interest and looked at their smartphones.

However, it was hard to tell with Regina Ip Lau Suk-yee, who wore dark sunglasses inside the Legislative Council chamber. Lau claimed she had an eye inflammation, but she looked grumpy; she did comply with the dress code of wearing something turquoise to match the colour of the budget's cover.

China Stops Publishing Employment Data, Outlook Grim

Job prospects for fresh grads in China are very slim

China's expectations that its economy would bounce back after all its Covid-19 restrictions were lifted did not come to fruition.

Instead the economy is sputtering, further exacerbated by massive property developer Country Garden, that may default on bank loans unless it delivers some 100 million completed apartments across the country soon. If it does not attempt to pay back its loans, it could cause China's financial outlook to fall even further.

Another concern is its recent graduates are unable to find jobs. The latest figure is that the unemployment rate for 16 to 24 year olds is now a record 21.3 percent, and it has risen each month this year.

Govt not releasing unemployment data now

It's gotten so bad that the government has announced it will not release this information anymore, causing speculation that China's economy is not doing well, and fears that kind of data could be reason enough to cause social unrest -- something Beijing deeply fears.

And young people have reason to be angry -- they have been stressed out since senior high school to prepare for the dreaded gaokao or university entrance exams. If they pass and get into tertiary education and then graduate with no job prospects, then what is the point of even going to university?

As a result many young people are "lying flat", rejecting the work ethic of working long hours, and overachieving -- for what? 

Now with less chances of finding a job after graduation, more young people will be joining the ranks of the "lying flat" cohort. That in turn has led to slowing consumption, because the unemployed won't exactly be shelling out for luxury handbags or designer clothing, let alone even attempting to buy a home.

Part of the reason for such high unemployment numbers stems from China's zero-Covid policy, interrupting students' studies for over three years, and resulting in hardly any opportunities for internships which usually lead to jobs. 

Getting a job is like winning the lottery

Competition is fierce for "iron rice bowl" jobs in the civil service. Last year a record 2.6 million people applied for only 37,100 entry-level positions. It's like trying to win the lottery.

However, there are jobs -- in construction and transportation -- which migrant workers are qualified to do, while graduates aren't willing to do these blue-collar jobs after having studied four years in an ivory tower.

Chinese leader Xi Jinping's response? "Eat bitterness". Not quite sage words of advice from Xi Baba the next generation want to hear...