HONG KONG, Nov 22: Chinese finance minister Xiang Huaicheng has told Hong Kong it should to rein in its spending to tackle the ballooning budget deficit, a report said on Friday.

Xiang said in seminar at the Chinese University of Hong Kong on Thursday that the key to resolving Hong Kong’s deficit problem was “to cut spending”, although he did not elaborate, the South China Morning Post reported.

His remarks come as the government attempts to stem the growing budget deficit, which financial secretary Antony Leung has said could this year reach more than US$7.7 billion.

Among measures being considered by the government is a plan to cut civil service pay by 1.58 to 4.42 per cent to save an annual US$385 million. —AFP