Financial Secretary Paul Chan on Saturday said it wasn’t necessary for Hong Kong to have a borrowing ceiling, as the SAR government had a much lower debt burden than other major economies. Appearing on an RTHK programme, Chan was asked whether the government should set a borrowing ceiling in the event of its debt-to-GDP ratio hitting a certain level, as it moves to fund large infrastructure projects. "There's no need for us to set a cap," Chan said on an RTHK programme. Over the next five years, the government plans to issue up to HK$220 billion annually to invest in infrastructure projects. Half the proceeds will go to repay short-term debt. The move should push the SAR's ratio to 19.9 percent from 14.4 percent. "Looking at other major economies from around the world, even neighbouring regions, their debt-to-GDP ratio is 50 percent, or even 80 percent for some places. We do not need to go anywhere near that level," he said. While the government mainly used to issue short-term bonds, Chan said there would be more longer-term bonds in future to support the development needs of the Northern Metropolis mega project. The project is a long-term investment, he said, pointing out that it will take time from when the site is levelled to when economic activity there starts contributing to tax coffers. The ratio between short-term and long-term bonds will change depending on market conditions and demand, Chan added. Edited by Robert Kemp