Hong Kong Suddenly Flush With Cash as Budget Returns to Surplus

Hong Kong started to take its first steps away from austerity after public finances ended their longest stretch of deficits in two decades, pledging billions in technology spending and some tax relief to more than 2 million people.

In an annual budget speech, Financial Secretary
Paul Chan reported a consolidated surplus of HK$2.9 billion ($371 million), a turnaround from the HK$67 billion shortfall originally forecast by the government. He also made a growth projection more bullish than envisaged by most economists.

The upbeat tone on display on Wednesday was in stark contrast to Chan’s address last year, which laid out ...