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Hong Kong budget 2026-27
Hong KongPolitics

Which Hong Kong government departments get budget boosts while others face cuts?

New funding channelled into innovation, AI and intellectual property despite overall spending cuts and a drive to trim the civil service

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Hong Kong’s innovation and technology, intellectual property and investment promotion departments will receive budget increases of at least 10 per cent in the coming financial year. Photo: Karma Lo
Matthew Cheng

Hong Kong’s innovation and technology (I&T), intellectual property and investment promotion departments will receive budget increases of at least 10 per cent in the coming financial year, even as the government moves to curb recurrent spending, while the environmental branch and public broadcaster face sharp cuts of 70 and 28 per cent, respectively.

The Home and Youth Affairs Bureau will expand its civil service workforce by 16 per cent in 2026-27 – the largest increase among all departments – even as the overall civil service headcount shrinks by 2 per cent.

Financial Secretary Paul Chan Mo-po announced in his annual budget on Wednesday that the government’s recurrent expenditure would be cut by 2 per cent in 2026–27, even after the city’s coffers returned to surplus.
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However, the individual budgets of all bureaus and departments showed that nine would see rises of more than 10 per cent. These include the Innovation, Technology and Industry Bureau, the Digital Policy Office, the Intellectual Property Department and InvestHK, with increases ranging from 11 to 27 per cent.

The new spending covers initiatives such as establishing the AI Research and Development Institute and expanding the use of artificial intelligence (AI), launching the IP Academy pilot programme, and pursuing measures to help mainland Chinese firms in “going global” and attract strategic industries and enterprises, as outlined in their budgets.

This year’s budget focused on I&T development and pledged significant support and investment in key areas such as AI and intellectual property.

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