Hong Kong (CNN Business) Hong Kong is handing most of its residents a pile of cash to spend as it tries to save its slumping economy from the aftermath of protests and the coronavirus outbreak.

The Asian financial hub said Wednesday that the measure — the cornerstone of a 120 billion Hong Kong dollar ($15.4 billion) stimulus package — will involve giving 10,000 Hong Kong dollars (about $1,280) to all permanent residents in the city who are at least 18. About seven million people will benefit from that program.

Financial Secretary Paul Chan also warned that the city will record its first budget deficit in 15 years due to the recession that began in the third quarter of 2019.

The situation is expected to worsen. Chan said the deficit for the next fiscal year through March 2021 is expected to hit a record high of around 4.8% of the city's GDP.

"Hong Kong's economy is facing enormous challenges this year," Chan said. "The outlook is far from promising in the near term."