Lawmaker urges 43 government funds be reallocated to help ease fiscal deficit

The government could dip into long-established but underused government funds amid the fiscal deficit, a lawmaker said.

During a radio program today, Election Committee legislator Andrew Lam Siu-lo suggested that the government conduct a thorough review of various funds, noting that some “often go unnoticed and lack publicity, yet they accumulate significant interest.”

Financial Secretary Paul Chan Mo-po delivers the 2025-26 budget on February 26, with various sectors closely watching how the government plans to generate revenue and reduce expenses amid a budget deficit of just under HK$100 billion for the year ending March 31. 

The businessman-politician noted that, as of September 2024, a total of 43 funds had been established by various government departments, with two -- the Sir David Trench Fund for Recreation–Sports Aid for the Disabled Fund and the SDTFR–Sports Aid Foundation Fund -- showing low usage rates for nine and 10 years. 

Lam questioned the government at yesterday’s Legislative Council meeting about the operation of government funds, but the authorities asserted they had a regular management mechanism.

Lam said on the radio today that these low-usage funds are related to the development of disabled athletes.

He suggested that funds be reallocated so that resources put to funds supporting sports development should include disabled athletes as applicants, which would reduce administrative costs and make better use of resources.

He viewed these unused funds as “minor issues” and noted the government’s larger allocation to innovation and technology, which necessitates the need for a serious review of resource management among the over 40 funds operating in Hong Kong.

Regarding public works projects, Lam noted that the research cost for the Northern Metropolis Highway was reduced from HK$1.1 billion to HK$700 million, indicating that authorities can optimize designs given the current financial situation. 

He emphasized that the government should proactively review projects rather than wait until issues are revealed at Legco.

As for civil service manpower, Lam said Legco has supported the government’s use of smart management and intelligent development in recent years, and should not rely on increasing personnel to handle issues.

Other legislators gave suggestions at the same radio program today for adjusting educational resources due to significant demographic changes. 

Education sector lawmaker Chu Kwok-keung said cutting education expenditure is not a solution, noting the SAR should invest in education to attract more talent and maintain quality.

Primary and secondary schools lack the capacity to raise funds, Chu said, as he warned that budget cuts would be harmful and their implications should be carefully considered.

Chu added that universities should better utilize reserves, convert knowledge into application and seek business support.

He stressed the importance of Hong Kong becoming a hub for high-end talent, noting the central government’s initiative for a strong educational nation would guarantee that education spending will only increase, a principle that should also apply to the SAR.

(Cheng Wong)