Budget 2023-24: child allowance boosted by HK$10,000, but is increase enough to turn around Hong Kong’s falling birth rate?

  • Financial Secretary Paul Chan proposes increasing allowance per child to HK$130,000 as ‘first step’ in tackling record low birth rate
  • Professor Paul Yip Siu-fai calls move ‘good gesture’ but ultimately ineffective in convincing couples to have more children

Hong Kong’s birth rate hit a record low of 32,500 last year. Photo: Jelly Tse

Hong Kong will increase the child allowance rate by HK$10,000 (US$1,275) in a bid to ease financial strain on families, and while the move has been welcomed by one population expert, he warned the more generous amount would do little to boost the decline in the birth rate.

Financial Secretary Paul Chan Mo-po on Wednesday also proposed doubling the tax deduction for retirement fund contributions made by employers for workers aged 65 or above to encourage greater employment of older residents.

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