In Hong Kong, the control and management of the public finances are governed by the Public Finance Ordinance. The preparation of the estimates of the Government’s revenue and expenditure for the upcoming financial year is under the responsibility of the Financial Secretary while the approval of the Budget rests with the Legislative Council (Legislative Council Secretariat, 2019b). The budgetary process follows the following cycle: 1) In every August / September, the Chief Executive conducts the first round of Budget consultations on expenditure for the next year’s Budget as part of the Policy Address consultations; 2) In September / October, the Financial Secretary gives out operating expenditure envelopes to bureaux and departments; 3) In October, it is the beginning of the new legislative session. The Chief Executive delivers the Policy Address; 4) from October to February, the Financial Secretary conducts the second round of Budget consultations on revenue for next year’s Budget; 5) In February, the Financial Secretary introduces the Appropriation Bill and the Estimates of Expenditure into the Legislative Council. First and Second Reading of the Appropriation Bill; 6) from February to March, the President of the Legislative Council refers the Estimates of Expenditure to the Finance Committee for examination. The Finance Committee examines the Estimates of Expenditure. The Appropriation Bill is debated and passed by the Legislative Council. Resumption of Second Reading debate and Third Reading of the Appropriation Bill. After passage of the Appropriation Bill, the Finance Committee examines the Government’s proposals to change the approved Estimates of Expenditure; 7) end of March is the end of financial year; and 8) in June/ July, the Financial Secretary or the Secretary for Financial Services and the Treasury introduces the Supplementary Appropriation Bill to seek approval of a supplementary appropriation for the services of the Government.

References:

Legislative Council Secretariat. (2019b). Legistrative Council in Brief No. 8 – How does the Legistrative Council approve public expenditure. Hong Kong: Legislative Council, HKSAR Retrieved from https://www.legco.gov.hk/education/files/english/Factsheet/Factsheet8.pdf.