Calls to set up an independent legal aid body have been rejected.
Officials said an independent body with an unlimited budget would be difficult to monitor.
The decision drew criticism from legislators, the Bar Association and the Legal Aid Services Council, which advises the Government on the issue. It had recommended an independent body without a cap on expenditure.
Director of Administration Carrie Yau Tsang Ka-lai said other jurisdictions with an independent body, such as Australia, Canada and Britain, faced pressure to contain costs and cut services.
Some had chosen to cap spending on individual cases, while others cut services.
Mrs Yau said there would be a problem of accountability if an independent authority was established.
'This includes the means to ensure effective use of resources and efficient operations of the authority, all of which are difficult to resolve,' Mrs Yau said.