(Yicai Global) Nov. 10 -- Hong Kong's economy grew rapidly over the last six months, the first half of its fiscal year, Deloitte, one of the world's four biggest accounting firms, said, predicting that the local government will enjoy an ample fiscal surplus next year.

Between April and September, Hong Kong's fiscal surplus reached HKD12.4 billion (USD1.59 billion), marking the special administrative region's first surplus in a single half. During the same period last year, the region suffered a fiscal deficit of HKD60.1 billion. Deloitte forecast the city will boast a HKD138.4-billion surplus when its fiscal year ends on March 31 next year.

The Hong Kong government should adopt a new fiscal budget plan in case of the large surplus, the accountancy suggested. Reducing or exempting tax on the middle class and staff in emerging sectors; encouraging high-tech development in companies and improving the region's status as an international financial center are all potential ways to use the funds, it said.

Other suggestions included reducing or waiving stamp duty for permanent Hong Kong residents buying their first home, or allowing taxpayers to deduct rent from their taxable income.

In terms of corporate growth, Deloitte suggested ramping up research and development expenditure from 0.73 percent of gross domestic product to 1.5 percent, and allowing Hong Kong-registered companies to deduct patent royalty income from their taxable profits.

Financially, the accountancy advised expanding the scope of profit tax exemption to all fund types in a bid to attract more fund managers to the region.