Loose Change

John Tsang the Finance Minister reported a HK$110 billion surplus in this year's budget. While most governments end up in deficit, the Special Administrative Region of Hong Kong has for a consecutive year reported a surplus, with this years' surplus double of last years'. For the first time in my life, I paid attention to what was being said as I am officially a taxable person. While most budgets would drone on about increasing inflation and higher taxes, less public spending etc, John Tsang had a very interesting take in distributing the extra cash out to the population. Previous years' have seen tax cuts and rebates. This year, there were funny things like 1-month free rent, HK$ 3000 "fruits allowance" for the eldery, HK$1800 free electricity for all households, HK$6000 bonus for all employees earning less than HK$10k/month in their Mandatory Provident Funds, 1-month additional allowance for the disabled and tax free alcohol.

I like the tax free alcohol bit, but they shops are unlikely to totally drop prices and even if they did drop them, it would not be the full 28% taxable. What does this budget mean to me? Well, I get a 75% tax rebate capped to HK$25k. I think I got HK$15K excess non-taxable basic personal allowance last quarter when they announced a surplus in the last quarter of the year. But how many governments actually give a 75% discount in tax? It's like "wow!!" I love Hong Kong.

They are also investing HK$ 50 billion on providing for the health services. Hong Kong has an increasingly aged population. One in eight people in Hong Kong is above 65 years old, with this ratio decreasing to one in four in 2033. This would mean my profession would be in higher demand and if we don't do something about grabbing a piece of the 50billion cake we will not be able to cope with the demands that will be put on our service. While is it very noble for the government to throw out free money to improve the dire social services in the community, one also wonders if this will evolve into a welfare state like the many developed nations of the world. There is also the nagging thought at the back of the mind: How long will the ecomony last? It is a matter of when the bubble will burst. The inflation rate is going up and the value of the Hong Kong dollar is going down as it is pegged to the US dollar.

I think I should slow the shopping spree just a little. Who knows what the future holds? I need to save for a rainy day or at least find a rich guy.

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On a lighter note, I could grab an ice-cream. I went out for dinner with the medic yesterday and saw 'kitty' and 'pokemon' flavoured ice-cream. The 'kitty' one was pink and glittery while the pokemon one was a little more manly in yellow with multi-coloured swirls. I wonder what they taste like? Plastic? As licking a hello kitty would probably be?