"We are sitting on this huge reserve and the best way is to give back to the people or spend it on much needed projects," Lee said.
Analysts agreed Tsang is unlikely to say anything concrete on democratic reform and that he will use the three- month green paper consultation, which expires today, to sidestep the issue.
Analysts believe Tsang will also outline strategies to enhance the city's competitiveness and strengthen its status as a top financial center to fight off threats from Shanghai and Macau, which just opened the Venetian Macao.
"Facing the threat from Macau, Hong Kong's competitiveness is decreasing. A lot of people are worried about being marginalized. This is something that Donald Tsang would have to address," said James Sung Lap-kung, political professor at City University.
Tsang's expected HK$200 billion investment includes:
HK$30 billion for a Guangzhou- Shenzhen-Hong Kong Express Rail Link (previously known as Regional Express) to be completed by 2010;
HK$60 billion for the Hong Kong-Macau-Zhuhai Bridge (up to 3,000 jobs) to open in 2009;
HK$20.1 billion for the Tuen Mun West Corridor with the funding proposal at the end of this year, to be completed in 2016;
HK$6 billion to HK$7 billion for a South Island Line (6,000 jobs) to be completed in 2015;
HK$30 billion for a Sha Tin- Central Line (12,000 jobs);
HK$9.8 billion for the Southeast Kowloon redevelopment (85,400 jobs);
HK$19 billion for the West Kowloon Development (11,000 jobs); and
HK$3.2 billion for the Cruise Pier (6,900-10,900 jobs).