Hong Kong to review some charges for public services to help balance its books

To increase sources of revenue, government to review charges for public services, which have not been adjusted for long time, finance chief says

Economist says any increases could be aligned with rate of inflation, which grew by 2.1 per cent in first 11 months of 2023, year on year

3-MIN READ3-MIN

A display of the city’s airport with its third runway. The Airport Authority has decided to issue HK$5 billion worth of retail bonds to help finance the third runway project and other operations. Photo:
Dickson Le

Published: 7:39pm, 7 Jan 2024Updated: 10:16pm, 7 Jan 2024

The Hong Kong government will review some charges for public services and those based on a user-pay principle in a bid to raise revenue while lowering long-term infrastructure investments by encouraging private partnership to cut spending, the financial secretary has said.

The moves are aimed at helping the government to balance its books after Financial Secretary Paul Chan Mo-po warned the city was expected to suffer a bigger-than-expected deficit of more than HK$110 billion (US$14.1 billion) in 2023-24 following massive spending tied to the pandemic.

Chan is in the process of gauging public views ahead of his budget speech expected to be delivered next month.

“We are determined to consolidate public finances, cut expenditures and increase revenue and gradually restore balance to government revenue and expenditures,” he said in his weekly blog on Sunday. “It cannot be too slow or too hasty. During the process, the affordability of different classes of society and the operating conditions of different industries must be carefully assessed.”

The Post has learned that Financial Secretary Paul Chan had yet to identify which types of charges may face adjustments. Photo: Dickson Lee

The minister promised to ensure that underprivileged groups would continue to receive support through the social security net.