Chinese People's Political Consultative Conference Standing Committee member Henry Tang on Tuesday said the government’s issuance of bonds can help counter the fiscal deficit Hong Kong is facing.

In his recent budget speech, Financial Secretary Paul Chan announced that the government will issue bonds worth HK$120 billion in the next financial year.

On the sidelines of the “two sessions” in Beijing, Tang said the SAR government’s recurrent expenditure had increased in the past few years, and the issuance of bonds can help boost funds in the short run.

“I have no doubt that whether it’s the issuance of bonds or IPOs or other financial instruments, Hong Kong will be in a unique position of strength. As the economy recovers, we will stand to benefit from these strengths,” he said.

Tang, who previously served as financial secretary and chief secretary, also commented on Premier Li Qiang’s work report announced on Tuesday morning.

He said the report is “pragmatic” and “eager”, and he has confidence in the country’s development.

On Hong Kong affairs, Tang said the SAR should make use of its unique strengths as an international financial centre, such as acting as a platform for the country to issue sovereign bonds.