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Hong Kong May Boost Spending on Poor as Income Gap Widens

Hong Kong’s government may boost spending on the poor and elderly in its first budget under Chief Executive Leung Chun-ying tomorrow, as record home prices and falling ratings add pressure to narrow a widening income gap.

The government may report a surplus of HK$55 billion ($7.1 billion), boosting reserves to a record HK$724 billion, according to Marcella Chow, an economist at Bank of America Corp. in Hong Kong. The budget, presented by Financial Secretary John Tsang, will probably trim one-time measures and focus spending on alleviating poverty and helping the aged, Chow said.