Hong Kong must invest in megaprojects such as the Northern Metropolis to drive economic growth even if they cause deficits, the finance chief has said, while appealing for understanding from the middle class over the lack of sweeteners.

Hong Kong’s technology enterprises are set to benefit from the city’s annual budget as the government plans to roll out investments in artificial intelligence research.

Finance secretary lays out new and increased fees to boost revenue and a string of cutbacks to reduce government’s expenditure.

Hong Kong is expected to focus on steps to curb spending in its annual budget on Wednesday, as it seeks to tackle a fiscal deficit likely to have widened to double the city's target amid rising global economic uncertainty and a weak property market.

Facing bumper deficits and a faltering economy, finance chief Paul Chan sought to make savings as he delivered the 2025 Budget at the legislature on Wednesday. ・HK logs estimated HK$87.2bn deficit, 7% spending cuts over coming 3 years.