EY anticipated that the Hong Kong government will record a deficit of approximately HKD500 million for the fiscal year 2025-2026, evidently narrowing from the HKD67 billion deficit initially projected in the fiscal budget announced by the government in February 2025.Due to the expected deficit for 2025-2026, Hong Kong's fiscal reserves as of March 31, 2026 will mildly decrease from HKD654.3 billion to HKD653.8 billion.