Hong Kong budget: can Paul Chan make needed cuts without angering the public?
The Post examines the difficulties the government faces should it cut expenditure in major spending areas, such as the HK$2 transport subsidy, public healthcare and civil servant salaries
Hong Kong’s finance chief is expected to deliver his budget speech on February 26 and is under mounting pressure to balance the books. The Post looks at the dilemmas involved and the political will required to address funding challenges in a two-part series.
For six days a week, 64-year-old Wen Runlan spends half an hour commuting on the MTR to get to work, spending just HK$2 (26 US cents) per trip thanks to the government’s transport subsidy.
For Wen, a security guard who earns HK$12,000 a month and lives alone, the subsidy is significant, allowing her to save about HK$400 monthly, or HK$15.6 each day, travelling between her home in Shek Mun and her workplace in Lai Chi Kok.
“Without the HK$2 fare, I would need to further tighten my belt, such as by going out less on my days off … because it’s not possible for me to cut back on my rent and medical expenses,” she said.
Wen spends a third of her wage on rent and traditional Chinese medicine for her stomach and nerve problems. The rest goes to daily living expenses and retirement savings, although she says she has little hope of stopping work any time soon.
“I hope the government can consider the financial hardships of the low-income group if they are to adjust the HK$2 transport subsidy [for those aged 60 to 65],” she said, adding she hoped the fare would not be raised beyond HK$3.
