The Government must take preventive measures against the structural deficit forecast by the Working Group on Long-Term Fiscal Planning.
Financial Secretary John Tsang told legislators today the group's report predicted a structural deficit in about 10 years.
It suggested that from 2018 the working population will diminish, and medical and welfare expenses will rise.
In his 2015-16 Budget yesterday, Mr Tsang pledged to set-up a Future Fund which will serve as long-term savings to be placed in long-term investments for higher returns.
He added that economic development is important to provide resources to solve social problems.
Speaking on the potential opportunities brought by the "One Belt One Road" initiative, Mr Tsang said it will help Hong Kong businesses to enter new markets in Europe, Asia and Africa.
On Shanghai-Hong Kong Stock Connect, Mr Tsang said he hopes to augment the arrangement to provide a wider variety of products. The Government will also consider establishing the Shenzhen-Hong Kong Stock Connect later this year.
