Allocation of Hong Kong surplus on social welfare, sports more than generous, says expert
About HK$30b will be spent on elderly and rehabilitation services for the disabled, while HK$20b will be for sports development
A finance expert has called the latest budget’s allocation for social welfare and sports a more “generous” move than before.
The comments came as Financial Secretary Paul Chan Mo-po revealed his first budget on Wednesday morning in the Legislative Council, after taking the position last month.
Chan forecast a surplus of HK$92.8 billion in the current fiscal year, with HK$61 billion of the amount earmarked to support four areas of development, given the “higher-than-expected surplus”. The four areas are elderly and rehabilitation services for the disabled, which have been allocated HK$30 billion, sports, which will be given HK$20 billion, information technology and youth development.
“Earmarking HK$61 billion from the some HK$90 billion surplus was an act much generous than before,” said Billy Mak Sui-choi, associate professor at Baptist University’s department of finance and decision sciences.
While Mak agreed with the extra support for social welfare, he raised doubts on whether there were sufficient manpower to support the services. Besides reserving HK$200 billion last year for a 10-year hospital development plan, no new proposal on staff training has been made for health care.
There were also questions on whether sports development should be given a high priority, Mak said, referring to the HK$20 billion that would be used to develop new or improve existing sports and recreation facilities in different districts.
Chief Executive Leung Chun-ying revealed in the policy address last month that the government would launch 26 projects in the coming five years to improve sports facilities.
“Is there such an urgency for sports facilities? I don’t think the problem of a lack of community facilities is that severe,” Mak said.
He said relief measures introduced by the budget, including reduction of tax and waiving of rates, were consistent with previous ones.
Meanwhile, Chinese University political scientist Ivan Choy Chi-keung said the ground Chan had covered on the concept of public finance in the budget could indicate his wish to stay in his current position beyond the six-month term.
“It seems like he doesn’t want to be in this role for six months only, but rather indicating a wish for an even longer period,” he said. “He appears to be revealing his intention and hopes to seek recognition from the next chief executive and the public.”
The budget also indicated that Chan agreed with some concepts upheld by former finance minister John Tsang Chun-wah.
“Chan also mentioned sustainability and fiscal prudence. He did not fully deny [Tsang’s financial strategy],” Choy said.
