Crisis Budgeting: Budgeting Decisions of the States in responding to Financial

How do states and governments respond to financial and economic crises in their budgeting decisions? This paper examines this question by analyzing the case of Hong Kong during the 1997-98 Asian financial crisis and the 2008... [ view full abstract ]

How do states and governments respond to financial and economic crises in their
budgeting decisions? This paper examines this question by analyzing the case of
Hong Kong during the 1997-98 Asian financial crisis and the 2008 global
financial crisis. Due to the slow down of the Chinese economy and the major
housing bubble in Hong Kong, it is expected that another major crisis is in the
making and this paper will also examine how the upcoming crisis may affect the
budgeting decisions of Hong Kong. While financial and economic crises can be
global in nature, its budgeting decisions are not. The decision of resource
allocation and redistribution in budgeting, even during a crisis period, is
often a reflection of the political economy in the country. The study of crisis
budgeting is therefore an important lens in understanding the environment and
key factors driving budgeting decisions in a country.