Where your tax goes

Where the money comes from and where it goes

The 2026-27 Budget plans HK$843.4 billion in spending and HK$765.2 billion in revenue. Borrowing covers the gap. p.12 p.7

Revenue pays for most of the spending; new bonds cover the rest

2026-27 estimate: revenue, borrowing, spending and reserves.

  • Recurring revenue
  • Volatile or one-off revenue (hatched)
  • Borrowing, repayment and reserves (reverse-hatched)
  • Policy area groups (colours)

Where it comes from

2026-27 estimate; shares of government revenue. SourcesEstimates, Head 3, p.1Estimates, Head 9, p.1Capital Works Reserve Fund, p.1Summary of revenue, p.2Estimates, Head 7, p.1Official document, p.6Official document, p.9Official document, p.12Official document, p.62Official document, p.4Official document, p.6Official document, p.6Budget Appendix A, p.7

  1. Profits tax HK$210.0bn 27.4%
  2. One-off transfers volatile / one-off HK$127.8bn 16.7%
  3. Stamp duties HK$101.0bn 13.2%
  4. Other taxes and rates HK$99.6bn 13.0%
  5. Salaries tax HK$98.0bn 12.8%
  6. Fees, rents and other HK$71.7bn 9.4%
  7. Investment income volatile / one-off HK$39.1bn 5.1%
  8. Land premium volatile / one-off HK$18.0bn 2.4%
  9. New government bonds borrowing HK$160.0bn

Revenue HK$765.2bn; with borrowing, HK$925.2bn in total (our calculation).

Where it goes

2026-27 estimate; shares of government spending. p.12 p.7

  1. Health HK$153.1bn 18.2%
  2. Social Welfare HK$148.1bn 17.6%
  3. Infrastructure HK$124.9bn 14.8%
  4. Education HK$112.0bn 13.3%
  5. Support HK$90.1bn 10.7%
  6. Security HK$71.5bn 8.5%
  7. Economic HK$57.0bn 6.8%
  8. Environment and Food HK$51.3bn 6.1%
  9. Community and External Affairs HK$28.0bn 3.3%
  10. Housing HK$7.4bn 0.9%
  11. Repaying earlier bonds outside spending HK$59.7bn
  12. Added to reserves outside spending HK$22.1bn

Government spending HK$843.4bn.

Revenue sources group the printed lines; borrowing and principal repayments are shown separately.

What's inside the revenue figures?

Revenue categories and the previous two years

Government revenue by category

Expanded amounts are HK$ million. Select a category to see its printed lines.

Category2026-27EstimateShare2025-26Revised estimate2024-25Actual
Profits tax p.1HK$210.0bn210,000.027.4%HK$209.0bn209,000.0HK$177.7bn177,687.8
One-off transfers (Exchange Fund, Bond Fund surplus, funds outside the accounts) p.1 p.1HK$127.8bn127,830.016.7%HK$61.5bn61,500.0HK$15.0bn15,000.0
One-off transfer from other funds (funds outside the Government's accounts, incl. Bond Fund surplus) p.1HK$52.8bn52,830.06.9%HK$61.5bn61,500.0HK$15.0bn15,000.0
Transfer from Exchange Fund (investment income) p.1HK$75.0bn75,000.09.8%——
Stamp duties p.1HK$101.0bn101,000.013.2%HK$99.5bn99,500.0HK$63.9bn63,880.2
Salaries tax p.1HK$98.0bn98,000.012.8%HK$97.0bn97,000.0HK$88.9bn88,878.8
Investment income (fiscal reserves) SourcesEstimates, Head 7, p.1Capital Works Reserve Fund, p.9Official document, p.6Official document, p.9Official document, p.4Official document, p.6Official document, p.6Official document, p.12Official document, p.62Capital Works Reserve Fund, p.1HK$39.1bn39,076.05.1%HK$35.5bn35,486.8HK$44.7bn44,717.9
Investment income and interest (GRA) p.1HK$9.6bn9,561.01.2%HK$7.6bn7,552.0HK$5.4bn5,404.0
CWRF investment income p.9 p.1HK$4.0bn3,968.00.5%HK$4.2bn4,174.8HK$3.6bn3,639.9
Land Fund investment income (incl. Future Fund returns brought back) p.6HK$20.0bn20,000.02.6%HK$18.5bn18,500.0HK$31.0bn31,000.0
CIF investment income p.9HK$522m522.00.1%HK$539m539.0HK$526m526.0
CSPRF investment income p.4HK$2.9bn2,903.00.4%HK$2.5bn2,549.0HK$2.1bn2,072.0
DRF investment income p.6HK$9.0m9.00.0%HK$7.0m7.0HK$5.0m5.0
ITF investment income p.6HK$734m734.00.1%HK$869m869.0HK$984m984.0
Loan Fund investment income p.12HK$272m272.00.0%HK$255m255.0HK$225m225.0
Lotteries Fund investment income p.62HK$1.1bn1,107.00.1%HK$1.0bn1,041.0HK$862m862.0
General rates p.2HK$35.2bn35,183.04.6%HK$36.5bn36,516.0HK$32.7bn32,723.5
Bets and sweeps tax (betting duty) p.1HK$28.7bn28,700.03.8%HK$28.1bn28,100.0HK$28.5bn28,511.7
Fees, charges and utilities p.2HK$22.2bn22,190.72.9%HK$22.6bn22,571.2HK$22.0bn21,998.2
Utilities p.2HK$3.5bn3,492.70.5%HK$4.0bn4,012.2HK$4.1bn4,123.6
Fees and Charges p.2HK$18.7bn18,698.02.4%HK$18.6bn18,559.0HK$17.9bn17,874.6
Other revenue (dividends, loan repayments, Mark Six, reimbursements, etc.) SourcesEstimates, Head 7, p.1Estimates, Head 9, p.1Capital Works Reserve Fund, p.9Official document, p.6Official document, p.9Official document, p.6Official document, p.6Official document, p.12Official document, p.62Capital Works Reserve Fund, p.1HK$21.6bn21,613.72.8%HK$25.2bn25,178.4HK$26.4bn26,444.9
Returns on equity investments in statutory agencies/corporations p.1HK$7.3bn7,271.01.0%HK$8.4bn8,371.0HK$9.1bn9,070.8
Recovery from Housing Authority under the current financial arrangement p.1HK$3.6bn3,565.00.5%HK$1.5bn1,499.0HK$2.7bn2,656.4
Repayments of loans and advances p.1———HK$1,0000.0
Pension contributions p.1HK$700,0000.70.0%HK$800,0000.8HK$941,0000.9
Recovery of salaries and staff on-costs p.1HK$2.2bn2,212.00.3%HK$2.2bn2,207.0HK$1.8bn1,783.7
Light and fuel in government buildings p.1HK$28.0m28.00.0%HK$32.0m32.0HK$26.0m26.0
Recovery of overpayments and losses p.1HK$1.2bn1,244.00.2%HK$1.6bn1,581.0HK$1.9bn1,900.4
Other receipts p.1HK$1.3bn1,255.00.2%HK$5.3bn5,337.0HK$4.3bn4,333.9
Payments by Trading Funds – transfer of statutory return and interest income p.1HK$323m323.00.0%HK$363m363.0HK$367m367.4
Payments by Trading Funds – payments for "insurance" premium p.1HK$4.9m4.90.0%HK$4.9m4.9HK$4.9m4.9
Payments by Trading Funds – reimbursements arising from policy on "insurance" p.1HK$400,0000.40.0%HK$420,0000.4HK$235,0000.2
CWRF other receipts (donations, contributions and others) p.9———HK$86.3m86.3
Land Fund dividends, interest and other receipts from investments/loans p.6HK$21.0m21.00.0%HK$56.0m56.0HK$1.8bn1,825.0
CIF loan repayments p.9HK$198m198.00.0%HK$312m312.0HK$701m701.0
CIF dividends, interest and other receipts from investments/loans p.9HK$685m685.00.1%HK$864m864.0HK$731m731.0
DRF refund of grants p.6——HK$4.0m4.0HK$7.0m7.0
ITF refund of grants p.6——HK$58.0m58.0HK$61.0m61.0
Loan Fund loan repayments p.12HK$3.0bn2,982.00.4%HK$2.7bn2,705.0HK$1.4bn1,360.0
Loan Fund interest on loans p.12HK$535m535.00.1%HK$393m393.0HK$94.0m94.0
Loan Fund surcharges on overdue loan repayments p.12HK$6.0m6.00.0%HK$6.0m6.0HK$6.0m6.0
Lotteries Fund – Mark Six Lottery p.62HK$1.2bn1,183.00.2%HK$1.2bn1,188.0HK$1.4bn1,360.0
Lotteries Fund – net proceeds of auctions of vehicle registration marks p.62HK$50.0m50.00.0%HK$49.0m49.0HK$58.0m58.0
Lotteries Fund donations p.62HK$12.0m12.00.0%HK$9.0m9.0HK$11.0m11.0
CWRF donations and contributions p.1HK$37.7m37.70.0%HK$7.6m7.6—
CWRF other receipts p.1——HK$131m130.6—
Government rent, land licences and property rents p.1HK$20.0bn19,968.02.6%HK$19.0bn18,994.0HK$18.2bn18,199.6
Government land licences, Government rents (other than 3% rent) and rents from short term tenancies p.1HK$2.8bn2,776.00.4%HK$2.6bn2,634.0HK$2.8bn2,783.6
Rents from government quarters p.1HK$1.2bn1,193.00.2%HK$1.2bn1,188.0HK$1.2bn1,160.9
Rents from government properties p.1HK$1.6bn1,598.00.2%HK$1.3bn1,251.0HK$1.2bn1,219.7
Government rents charged at 3% of rateable values (Cap. 515) p.1HK$14.4bn14,401.01.9%HK$13.9bn13,921.0HK$13.0bn13,035.4
Land premium p.9 p.1HK$18.0bn18,000.02.4%HK$17.5bn17,500.0HK$13.6bn13,601.7
Personal assessment p.1HK$9.0bn9,000.01.2%HK$8.9bn8,900.0HK$8.2bn8,223.3
Motor vehicle first registration tax p.2HK$8.9bn8,880.01.2%HK$4.9bn4,890.0HK$4.7bn4,744.7
Duties (tobacco, liquor, hydrocarbon oil) p.2HK$8.4bn8,358.71.1%HK$8.1bn8,116.0HK$7.3bn7,330.6
Royalties, concessions, fines and penalties p.2HK$7.9bn7,937.61.0%HK$7.6bn7,565.6HK$6.7bn6,693.1
Fines, Forfeitures and Penalties p.2HK$2.0bn1,972.80.3%HK$2.2bn2,158.8HK$2.0bn2,011.4
Royalties and Concessions p.2HK$6.0bn5,964.80.8%HK$5.4bn5,406.8HK$4.7bn4,681.6
Other internal revenue (air passenger departure tax, hotel accommodation tax, estate duty) p.1HK$5.3bn5,296.00.7%HK$3.8bn3,844.0HK$2.3bn2,289.3
Estate duty p.1HK$100m100.00.0%HK$8.0m8.0HK$10.1m10.1
Air passenger departure tax p.1HK$4.4bn4,396.00.6%HK$3.1bn3,066.0HK$2.3bn2,279.3
Hotel accommodation tax p.1HK$800m800.00.1%HK$770m770.0—
Property tax p.1HK$4.2bn4,200.00.5%HK$4.1bn4,100.0HK$4.0bn3,983.7
Government revenue p.2 p.7HK$765.2bn765,234.0100%HK$688.8bn688,762.0HK$564.9bn564,908.9
One-off transfers bring in more than salaries tax

One-off transfers total HK$127.8 billion, compared with HK$98.0 billion in salaries tax. They include HK$75.0 billion from Exchange Fund investment income and HK$52.8 billion from other funds. SourcesEstimates, Head 9, p.1Capital Works Reserve Fund, p.1Estimates, Head 3, p.1

The other funds include the Bond Fund's accumulated surplus and unspent money outside the Government's accounts. Apart from another Exchange Fund transfer next year, these transfers are not expected to recur.

Land premium is hard to predict

Land premium was HK$13.6 billion in 2024-25 (actual), then HK$17.5 billion in 2025-26 (revised estimate). This year's estimate is HK$18.0 billion, or 2.4% of revenue (our calculation). SourcesCapital Works Reserve Fund, p.9Capital Works Reserve Fund, p.1Budget Appendix A, p.7

The provisional 2025-26 result was HK$1.1 billion above the revised estimate. web

From 2027-28, the forecast assumes land premium gradually reaches 2% of GDP. This year's estimate is only 0.5% (our calculation). SourcesBudget Appendix A, p.10Capital Works Reserve Fund, p.1Budget Appendix A, p.11 See the next few years

How the sums work

What are the operating and capital accounts?

The Budget keeps two accounts. The operating account covers day-to-day spending such as civil service pay, subventions and social security. The capital account covers building works, loans and other one-off spending, including interest on bonds. Land premium and the Exchange Fund transfer are capital revenue.

2026-27: operating and capital accounts p.7

AccountRevenueSpendingBalance
Operating accountHK$652.1bnHK$640.2bnHK$11.9bn
Capital accountHK$113.1bnHK$203.2bn−HK$90.1bn
TotalHK$765.2bnHK$843.4bn−HK$78.2bn

This year the operating account has a surplus of HK$11.9 billion, but the capital account has a deficit of HK$90.1 billion, mainly because of large building works. Money raised from bonds goes into the Capital Works Reserve Fund, which pays for these works. p.7

What is the difference between government and public expenditure?

This site uses government expenditure: the General Revenue Account plus five funds, including the Capital Works Reserve Fund. Public expenditure also adds the Housing Authority and the trading funds.

General Revenue Account
HK$648.4bn p.4
Capital Works Reserve Fund
HK$173.0bn p.4
Capital Investment, Innovation and Technology, Loan and Lotteries Funds (our calculation)
HK$22.0bn p.4
Government expenditure
HK$843.4bn p.4
Add: trading funds
HK$4.3bn p.4
Add: Housing Authority
HK$57.1bn p.4
Public expenditure
HK$904.7bn p.4

That is why the Housing group is only HK$7.4 billion of government expenditure but HK$64.5 billion of public expenditure, which includes the Housing Authority. p.12 p.11

How are government bonds counted?

Money raised from bonds is financing, not revenue, and repaying the principal is not spending. So the Budget first works out the deficit before bonds, then adds bond proceeds and subtracts repayments to get the surplus after bonds. That is the figure that changes the fiscal reserves. Interest on bonds counts as capital expenditure.

Government revenue
HK$765.2bn p.7
Less: government expenditure
−HK$843.4bn p.7
Deficit before bonds
−HK$78.2bn p.7
Add: new bonds
HK$160.0bn p.7
Less: repaying earlier bonds
−HK$59.7bn p.7
Surplus after bonds
HK$22.1bn p.7

The fiscal reserves are expected to grow from HK$657.2 billion on 1 April 2026 to HK$679.3 billion on 31 March 2027 p.3 p.7. The 1 April figure is the Budget's February estimate; the provisional outturn, published in April 2026, was HK$665.5 billion web. The estimate and the forecasts build on the February figure.

The Bond Fund (the Government Bond Programme) sits outside the Government's consolidated accounts, so when its accumulated surplus is transferred in, it counts as one-off revenue.