Government surplus hits $148.9b as of end-March

Thanks to high profits tax, stamp duties and land premiums.

Hong Kong recorded $148.9b in surplus in the year ending March 31, according to a government press release.

Higher profits tax, stamp duties and land premiums arising from higher property transactions buoyed yearly surplus.

Also read: Government surplus hits $7.16b in February as revenues outstrip expenditures

Tax revenues also rose 13% to $328.6b for 2017-18 buoyed by higher stamp duty receipts.

"The property price has increased quite dramatically in 2017. On top of that, the number of property transactions in 2017-18 has also increased,” said Commissioner of Inland Revenue Wong Kuen-fai. “"So the increase in the number of property transactions in 2017 will account partly for the increase in stamp duty."

Expenditure stood at $470.9b over the same period. Hong Kong remains flush with liquidity as fiscal reserves remained abundant at $1.103t as of end-March even as the Hong Kong Monetary Authority maintains its defense of the local currency peg.