Financial Secretary Paul Chan said on Wednesday that the current fiscal year's budget deficit would soar above HK$100 billion due to slower-than-expected economic growth in Hong Kong and lower-than-expected revenue from land premium and stamp duty.

In his budget speech, Chan forecast a consolidated deficit of HK$101.6 billion for this financial year, with fiscal reserves falling to HK$733.2 billion by March 31.

For 2024-25, Chan expected a deficit of HK$48.1 billion, with fiscal reserves falling further to HK$685.1 billion.

"Hong Kong's economic growth last year was slower than expected owing to global interest rate hikes, economic slowdown and continued geopolitical tensions," he said.

"Notwithstanding a reduction in total government expenditure after the pandemic, revenue from land premium and stamp duty has decreased under a softened asset market, resulting in a larger deficit than expected."