Experiences financial commentator Mr. Chiu Sin Chun said the latest Budget was too conservative and blamed that the issue of 10 billions of iBond was useless because the government did not make any investment of it.
The 2012-13 Budget was the last Budget of current-term Government. Chiu said John Tsang, the Financial Secretary, has no guidelines in planning the Budget though Tsang always emphasized “Prudent Management of Public Finance”.
“He felt good of his Budget but it was just too conservative but they should be more aggressive on making good use of money to nurture talents,” he said.
He suggested that the government can deduct the tax paid by those enterprises which made an effort on research and development of new technology, “It was much better than just delivering $6,000 ,”he said.
The addition of approximate 10 billion iBond was planned to be subscribed with a maturity for three years. Chiu said the government did not reinvest the money gathered in iBond but just left it in the reserve.
“When the time of maturity comes, capital and interest have to be paid back to investors. Those interest offered to investors is came from taxpayers,” he said.
iBond is offered to cope with inflation. Chiu said the poor were the group who really suffered from inflation but they do not have money to buy iBond. He suggested that the government should consider to buy MTR, Western harbor tunnel and Eastern Harbour Tunnel to help the poor.
