Why Did the Finance Chief Soften to Defuse a Budget Veto?

What Was Controversial About the Budget?

The new Budget’s refusal of tax rebates drew scathing criticism; Financial Secretary John Tsang first refused changes, then softened — promising to study responses on the MPF injection, tax rebates, and help for the “N-nothing” have-nots before LegCo’s vote, hoping to defuse a veto.

What Did the Parties Propose?

The FTU suggested converting the $6,000 injection into employees’ voluntary contributions, giving workers $250–$1,000 a month immediately; the Liberals proposed tax rebates; Economic Synergy’s Jeffrey Lam suggested turning the $6,000 into anti-inflation bonds. Twenty pro-establishment lawmakers met Tsang, mostly targeting the MPF injection for revision.

Was a Direct Handout Likely?

Hang Seng Management College’s So Wai-man thought the government’s premise remained “handouts via MPF,” so tax rebates or cash were unlikely. Anti-inflation bonds required a $10,000 entry ticket — asking citizens to top up $4,000 themselves would hardly be popular.