Budget 2025/26

The development plan for 2025-26 covers multiple areas including innovation and technology, talent cultivation, upgrading of advantageous industries, public finance, northern metropolitan area, housing, land and infrastructure.

1. Development of innovation and technology

• Artificial Intelligence : HK$1 billion is reserved to establish the Hong Kong Artificial Intelligence Research Institute to promote the commercialization of research results.

  
  

• Activities : Organizing the first “International Robotics Conference” and “International Artificial Intelligence Young Scientists Forum”.

  
  

• Business support : Launch of a NT$100 million "Manufacturing and Production Line Upgrade Support Pilot Program," providing a 1:2 matching program to provide funding of up to NT$250,000 to businesses.

  
  

• Regulation and policy : Simplify the approval of low-orbit satellite licenses, study the "Advanced Air Transportation System" legislation, and establish a low-altitude economic regulatory sandbox.

  
  

• Fintech : The Hong Kong Stock Exchange has launched a "Technology Enterprise Hotline" to facilitate the listing of technology companies; and is reviewing tax deductions for intellectual property rights.

  
  

2. Talent cultivation and education

• Research funding : A new round of $1.5 billion Research Matching Grant Program.

  
  

• Scholarships : Increase the number of places for the Hong Kong PhD Student Scholarship Scheme to 400 per year.

  
  

• Internship Programme : arrange for over 100 technology companies under the Hong Kong Investment Corporation, the Science Park Corporation and the Cyberport to interact with primary and secondary school students; provide approximately 4,000 short-term internship places.

  
  

• Employment in the Greater Bay Area : Relax the Greater Bay Area Youth Employment Scheme to cover those aged 29 and below, and increase the upper limit of subsidies to HK$12,000 per month.

  
  

• Talent Summit : The second "Hong Kong Global Talent Summit" will be held in early 2026.

  
  

3. Enhance advantageous industries

• Finance : Optimize listing procedures, tax incentives for funds and family offices, and launch the interconnection of the mainland and Hong Kong fast payment systems.

  
  

• Trade : Support mainland enterprises to "go global" and amend laws to facilitate the electronicization of trade documents.

  
  

• Shipping : The Hong Kong Maritime and Port Development Authority was established, with HK$210 million reserved for building a port community system.

  
  

• Aviation : Develop an aircraft disassembly and recycling center and expand aviation college courses.

  
  

• Medical : Propose a timetable for the Hong Kong Drug and Medical Device Regulatory Centre.

  
  

• Cultural and Creative Industries : The second "Hong Kong Performing Arts Expo" will be held in 2026, and 30+ cultural intellectual property projects will be promoted.

  
  

• Tourism : Allocate HK$1.23 billion to launch the "Hong Kong Tourism Development Blueprint 2.0" to attract cruise and sports events.

  
  

4. Green Development

• Green Technology : The Kowloon Tong Innovation Centre was transformed into the “GreenTech Hub”, bringing together more than 200 green technology companies.

  
  

• Electrification : Subsidize 600 electric buses and 3,000 electric taxis, and launch a NT$300 million charging station project.

  
  

• Sustainable fuels : Set targets for sustainable aviation fuel usage and provide tax exemption for green methanol.

  
  

5. SMEs and support measures

• Financial support : Inject 1.5 billion yuan into the "BUD Special Fund" and "Market Promotion Fund".

  
  

• Financing Guarantee : The SME Financing Guarantee Scheme is extended to November 2025.

  
  

• Tax reductions : The upper limit of rate reduction in 2025/26 is $500; the upper limit of salary tax and profits tax reduction in 2024/25 is $1,500.

  
  

6. Northern Metropolitan Area and Land and Housing

• Northern Metropolitan Area : HK$3.7 billion was allocated to the Hetao Park, and the planning of the San Tin Science and Technology City is to be completed in the third quarter of 2025.

  
  

• Land supply : The 2025/26 land sale plan will provide 8 residential sites, which can build about 13,700 units; in the next five years, land for 80,000 private housing units will be provided.

  
  

• Housing target : In the next five years, the public housing supply will reach 190,000 units, and the private housing construction rate will exceed 17,000 units per year.

  
  

7. Infrastructure and care

• Infrastructure investment : $15 million will be allocated to support the "Major Project Elite College", and project spending will increase to an average of $120 billion per year over the next five years.

  
  

• Caring measures : The number of elderly home vouchers increased to 6,000, the number of community care vouchers increased to 12,000, and an additional $180 million was allocated to support abused children.

  
  

8. Public Finance

• Revenue and expenditure overview : Total revenue in 2025-26 is 659.4 billion yuan, total expenditure is 822.3 billion yuan, and the deficit is 67 billion yuan.

  
  

• Expenditure control : Freeze civil servant salaries, cut 10,000 jobs by 2027, and save 2% in university funding over the next three years.

  
  

• Increase revenue : Aircraft departure tax increased to NT$200 (an increase of NT$1.6 billion), talent program application fee increased to NT$600-1,300 (an increase of NT$620 million), and research tunnel and road tolls (an increase of NT$2 billion).

  
  

• Bond issuance : In the next five years, the average annual issuance of bonds is 150-195 billion yuan, and the debt-to-GDP ratio will remain at 12%-16.5%.

  
  

9. Economic Outlook

• Performance in 2024 : GDP growth of 2.5% in real terms and overall inflation of 1.7%.

  
  

• 2025 forecast : Growth of 2%-3%, overall inflation rate of 1.8%.