Economic forecasts:
• GDP growth forecast at 1–3%.
• Headline CPI estimated at 3.5%.

Government expenditure:
• Gov’t expenditure estimated at HK$393.7 bln for 2012–13, up 7% while revenue estimated at HK$390.3 bln, down 9.9%.

Stabilize the economy

Supporting Enterprises
• Guarantee up to HK$100 bln of bank loans to SMEs.
• Waive business registration fees for 2012–13.
• Reduce profits tax for 2011–12 by 75%.
• Reduce fees on import and export declarations.

Preserving Employment
• Earmark HK$220 mln to enhance construction manpower training.
• Provide 130,000 training places for the unemployed; provide training for 20,000 youth per annum.
• Inject HK$100 mln to boost employment of people with disabilities.
• Set up an International Cuisine College.

Increasing Land Supply
• Provide residential sites good for 30,000 private flats in 2012–13.
• Increase supply of business sites.
• Build 75,000 public rental housing flats in five years.

Safeguard People’s livelihood

Education
• Recurrent expenditure: HK$60 bln, up 7%.
Medical and Health Services
• Recurrent expenditure: HK$45 bln, up 8%.

Social Welfare
• Recurrent expenditure: HK$44 bln, up 9%.

Relief Measures
• Provide an extra month of allowance to CSSA, Old Age Allowance and Disability Allowance recipients.
• Pay two months’ rent for public housing tenants.
• Allocate HK$100 mln to extend short-term food assistance services.
• Grant each residential electricity account a subsidy of HK$1,800.
• Waive rates for 2012–13, with a ceiling of $2,500/quarter per rateable property.
• Reduce salaries tax for 2011–12 by 75%, subject to a ceiling of $12,000.
• Raise various tax allowances.

Strengthening Social Capital
• Introduce a 3-yr pilot scheme of microfinance.
• Inject HK$200 mln to promote social capital development.

Invest in the Future

Promoting Development of Industries
• A further issuance of iBond worth not more than HK$10 bln.
• Extend the Mega Events Fund for five years with additional fund of HK$150 mln.
• Introduce measures to encourage the use of industrial buildings for data centers.
• Set up a HK$1 bln fund to help local enterprises tap mainland markets.

Infrastructural Development
• To spend HK$400 bln in various infrastructure projects.
• Consider building the third airport runway.