The new Budget will be released on Feb. 26, and the community is generally concerned about the government's fiscal deficit. The Financial Secretary, Paul Chan, said in a radio program today (Feb. 2) that in the face of the deficit, it is necessary to step up efforts to increase revenue and reduce expenditure, and government departments definitely need to reduce their expenditure, among which there is room for savings in education and healthcare.
The Secretary for Education, Christine Choi Yuk-lin, said yesterday that based on the principle of shared responsibility of the community, the University Grants Committee (UGC) would adjust its funding for the eight publicly-funded universities in the next three years. Chan said that the universities in Hong Kong have a certain amount of fiscal reserves, and in the future, they have to make good use of the reserves and develop income, so that the government can have two to three years to consolidate its finances.
Regarding the proposal of civil service pay cut or pay freeze, Chan pointed out that it is necessary to consider the impact of civil service pay on the private market, the current unemployment rate is low, and the environment is different from that after the implementation of the civil service pay freeze in Hong Kong in 2003. He said that the reduction of expenditure should be balanced with the reality of society, and should not be too drastic, to avoid affecting the government services, and to minimize the negative impact on society.
He also pointed out that there is a consensus in the community that if the $2 Scheme for the elderly is not changed, it will not be financially viable in the long run. As to how it should be changed, the government has to collect views and make assessments, and it is studying different options, and at the same time, combating the abuse of the Scheme is also an important issue.
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