Hong Kong government spending will reach an all-time high this fiscal year, putting it into a budget deficit, its financial chief said Wednesday, as the city grapples with its most severe COVID outbreak. The city of 7.4 million people is experiencing its fifth wave of COVID-19 infections. Daily cases have reached record highs with 8,798 new cases being reported on Thursday. The government announced mandatory testing for all residents three times in March, as well as a ban on travel from numerous countries, school closures, and restaurant dining restrictions. Stricter rules may be enacted, causing greater harm to businesses and jobs. “Economic activity, particularly in consumption-related sectors, will continue to be under intense pressure in the short term,” financial secretary Paul Chan said on Wednesday in his annual budget speech delivered via video. The city’s record spending of HK$807.3 billion ($103.45 billion) in the fiscal year 2022-2023 will outpace government revenue …
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