Hong Kong Financial Secretary Paul Chan announced a HK$120 billion (US$15.4 billion) relief package with tax cuts and a cash handout, in an effort to shore up economic confidence in a city battered by political unrest and the coronavirus.
The situation is expected to worsen.
Meanwhile, Hong Kong's GDP in 2019 was down 1.2 percent from the previous year, and the lowest since 2009.
Chan said the city was set to record a record high deficit this year - its first in 15 years. "The outlook is far from promising in the near term".
Chan also announced in his speech that Hong Kong's budget deficit is expected to spike to around $18 billion by 2021, according to the BBC.
The financial secretary said during a budget presentation that Hong Kong's economy has been "dragged by a host of headwinds" that percolated past year, including fallout from months of mass protests, the ongoing US-China trade war and the slowing global economy.
Hong Kong remains home to the largest number of initial public offerings by mainland firms, and mediates almost two-thirds of direct investment both into and out of China, according to a report by Hong Kong Watch, an advocacy group.
As well as the cash payout to around seven million people - a move which will cost around HK$71bn (€8.37bn) in total - one month's rent will be paid for lower-income tenants living in public rental housing.
What should the world do now about COVID-19?
The sudden increases of cases in Italy , the Islamic Republic of Iran and the Republic of Korea are deeply concerning. There is no cure for the coronavirus, which can lead to pneumonia, and a vaccine may take up to 18 months to develop.
Those issues pushed Hong Kong into recession, with the economy shrinking 1.2% overall a year ago, marking its first annual decline since the global financial crisis.
Some of the money for the relief package will come from a special fund that has been established "in view of the deteriorating economic and employment conditions as a result of the novel coronavirus epidemic", Chan said.
Public discontent over growing influence from Beijing has fuelled the protests, which were sparked by a now withdrawn proposal to allow Hong Kong citizens to be extradited to stand trial in mainland Chinese courts.
The projected shortfall, which was larger than most analysts expected, accounts for lower revenues, as well as another HK$120bn in mostly one-off relief measures, including handouts of HK$10,000 to Hong Kong residents aged over 18, tax breaks for firms and other subsidies.
The economy has been in recession for at least three quarters and many companies in tourism and retail are struggling to survive as a partial closure of the border reduces visitors to a trickle and keeps residents away from public areas.
Despite the ongoing challenges, Chan said he believes the economy will be able to bounce back in the long term.
"Whether this stimulus will be sufficient to pull Hong Kong SAR out of the recession that commenced in 2019 will depend on the severity and duration of the COVID-19 epidemic", Rajiv Biswas, APAC Chief Economist at IHS Markit told Al Jazeera.
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Love Is Blind is Netflix's latest original reality show that has social media going crazy with its insane premise and plot twists. Connecting only on an emotional level, the new couples then have to become engaged in order to actually meet face-to-face.
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Additional cases have also been reported in Switzerland, Kuwait, Spain, South Korea and Austria, according to the report. Authorities in Zhongwei said the patient arrived in Shanghai on February 20 after flying from Iran via Moscow.
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Manchester United midfielder, Bruno Fernandes, has six goals in the league after scoring in his side's 5-0 win over Club Brugge . Below is the draw for the last 16 in full as the first legs will be played on March 12 with the second legs on March 19.
Freaky cousin of jellyfish doesn't breathe oxygen
They found that the parasite doesn't have mitochondria, the biological machinery cells use for breaking oxygen into energy. Life started to develop the ability to metabolise oxygen - that is, respirate - sometime over 1.45 billion years ago .