Hong Kong government underspent on education and housing for past 20 years, study says
It finds city’s administration did not use up what was budgeted each year for such areas, seen as requiring service upgrades
The Hong Kong government spent less than what the budget allowed each year over a period of two decades on areas such as education, social welfare and housing – the very sectors in need of service boosts – according to a study.
In a research brief released on Wednesday, the Legislative Council Secretariat found the government – known for its strong fiscal discipline – had followed a general pattern of spending less than that was budgeted in each year for the past 20 years. The amount averaged at about HK$17 billion or 5 per cent of actual expenditure per annum.
The pattern of continued underspending was seen in many policy areas, including education, social welfare and housing.
But the report highlighted that the public was increasingly concerned over service gaps in these very areas, including long queues for public rental housing, medical services and social welfare services, as well as insufficient subsidised undergraduate places. It also noted that about half of secondary school leavers who meet entry requirements were unable to pursue undergraduate studies at the city’s publicly funded universities.
Financial Secretary Paul Chan Mo-po forecast a fiscal surplus of HK$16.3 billion in his budget speech delivered in February. The accumulated fiscal reserves reached a record high of HK$936 billion this month, equivalent to 24 months of government expenditure, according to the brief.
