Hong Kong Financial Secretary Paul Chan is set to report a significant narrowing of the city's budget deficit in his annual address, signaling improving fiscal health after years of pandemic-related shortfalls. The announcement comes as Hong Kong seeks to revitalize its economy through targeted investments in technology and innovation.

Chan's budget speech is expected to outline modest relief measures for residents while prioritizing long-term economic transformation. The government has been working to position Hong Kong as a regional tech hub, with previous budgets allocating billions to digital infrastructure and startup support. This year's focus on innovation reflects broader efforts to diversify beyond traditional financial services.

The narrowing deficit provides Chan with more fiscal flexibility to pursue his innovation agenda. While specific figures weren't disclosed in the announcement, the improved budget outlook suggests Hong Kong may have more room for strategic investments. The tech-focused approach aims to strengthen the city's competitive position amid growing regional competition from Singapore and other Asian financial centers.