HONG KONG – As the need for pandemic-related spending ebbs, funding for Hong Kong’s one-off relief measures dropped by over 80 percent in the 2024-2025 Budget while the SAR government tries to cut down the city’s fiscal deficit, according to a research brief.

The amount budgeted for the territory’s one-off relief measures reached HK$11.5 billion ($1.47 billion), or 80.6 percent lower than last year’s allotment of HK$59.4 billion, according to the brief issued by the Legislative Council Secretariat on Tuesday.

The HKSAR government intends to reduce the fiscal deficit of HK$101.6 billion by more than half to HK$48.1 billion. The LegCo is set to resume the Second Reading debate on the Appropriation Bill 2024 on April 24

The HKSAR government intends to reduce the fiscal deficit of HK$101.6 billion by more than half to HK$48.1 billion. The LegCo is set to resume the Second Reading debate on the Appropriation Bill 2024 on April 24.

According to the brief, the SAR government’s non-recurrent expenditure is projected to decrease by 47.7 percent to HK$33.6 billion this fiscal year.

The plunge in funding for pandemic-related one-off relief measures can be attributed to the end of electricity subsidies and the consumption voucher scheme and the scaling back of property rate concessions.

Several policy initiatives were introduced in the budget to bolster Hong Kong's economic strength and fiscal stability.

These included a fiscal consolidation program aimed at achieving fiscal balance in a few years' time, the issuance of bonds to support sustainable infrastructure projects, and the removal of all demand-side management measures for residential properties.

On the other hand, public expenditure is set to increase by 7.7 percent to HK$830 billion this year with social welfare, health, education and infrastructure getting the biggest chunks of the budget.

Funding for social welfare is expected to get the largest share of total public expenditure, receiving HK$136.2 billion or 16.4 percent of the budget. This represents a 15.7-percent increase from HK$117.8 billion last fiscal year.

The Social Security Allowance Scheme, which provides a monthly allowance to Hong Kong residents who are severely disabled or who are 65 years of age or above, is set to receive a 56.2 percent budget increase to HK$57.2 billion as it is expected to provide help to 1.5 million residents this year.

Health expenditure for 2024-2025 is expected to reach HK$127.9 billion, with its share in the city’s budget edging down slightly to 15.4 percent despite a 6.5 percent increase in funding from last year.

A substantial portion of the health budget is related to the delivery of public health services provided by the Hospital Authority, which is set to get HK$95.4 billion.

Education will get an estimated HK$115.7 billion, or an increase of 2 percent compared to its funding in the last budget. Meanwhile, infrastructure spending is set to increase by 19.8 percent to HK$106.1 billion.