Budget 2025: pay freeze for Hong Kong public servants, commercial land sales paused – as it happened
Changes to HK$2 fare scheme help balance ‘good intentions’ of policy and its costs, finance chief says.
Chan also revealed the deficit had reached HK$87.2 billion (US$11.2 billion) for the 2024-25 financial year. He earlier estimated it would hit HK$100 billion, more than double what he expected at the beginning of 2024, and marking the third consecutive financial year of recording a loss.
Follow our live updates on the budget to understand how it will affect you.
Reporting by Jeffie Lam, Denise Tsang, Jess Ma, Fiona Sun, Lo Hoi-ying, Elizabeth Cheung, Edith Lin, Natalie Wong, Oscar Liu, Connor Mycroft, Alfred Lam, Ambrose Li, Willa Wu and Harvey Kong.
Key takeaways:
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Civil servants’ pay will be frozen and 10,000 positions will be cut
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HK$2 transport subsidy scheme to be capped at 240 trips a month and eligible users have to pay 20 per cent of fares above HK$10
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HK$1 billion allocated to set up AI research and development institute
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Pause on land sales for commercial use
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A new batch of 10 strategic companies due to be revealed next month and expected to bring in HK$50 billion of investment
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New mega-events such as the World Tourism Cities Federation’s 2025 WTCF Fragrant Hills Tourism Summit in April
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HK$1.23 billion earmarked for tourism promotion, down 19.1 per cent year on year
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Deficit reaches HK$87.2 billion for 2024-25
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Fiscal reserves down by 12 per cent to HK$647.3 billion for 2024-25
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Fewer sweeteners targeting salary tax cuts, rates concessions for property profits tax and social security recipients
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HK$150 billion to HK$195 billion worth of bonds will be issued in the next five years to fund public projects
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Income to be boosted by raising passenger departure tax, fixed penalties for traffic offences and EV licence fees, as well as imposing levies for private cars crossing border to mainland China
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