(Bloomberg) -- Hong Kong’s budget deficit in the 2021-2022 fiscal year could rise to as much as HK$180 billion ($23.1 billion), exceeding original estimates of HK$101.6 billion, if factors including debt issuance are taken into account, according to Financial Secretary Paul Chan. 

Housing reserves and future fund investment returns could also contribute to a bigger shortfall, Chan wrote. Still, the city’s steady economic recovery and its positive outlook for the property market have eased pressure on the deficit this year, the financial secretary said.

Hong Kong reported a deficit of HK$257.6 billion, its largest in 20 years, in the 2020-21 fiscal year because of one-off pandemic relief measures. Chan said the city needed to strive to make good use of public resources to provide support for small and medium-sized enterprises amid the pandemic, while ensuring prudent financial management. 

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