PwC expects HK to record $10B surplus in FY10

PricewaterhouseCoopers says it expects the Hong Kong government to record a consolidated budget surplus of about $10 billion for the fiscal year ending 31 March 2010.

Such surplus is contributed mainly by property developers' additional land premiums paid for transfers and changes to land deeds, by the mid-year land sale, by the higher-than-expected stamp duties from the prosperous property and stock markets, and by satisfactory corporate profits tax revenue.

The company also expects the government to announce, on the day the budget is announced, a mild, $5 billion deficit.