The Hong Kong government will bring back HK$52.8 billion from various funds to its account as it seeks ways to fund a prolonged deficit in the capital account, drained by the expenditure on infrastructure.
The HK$37 billion accumulated fund surplus of the Bond Fund will be transferred to the government’s account in 2026‑27, Financial Secretary Paul Chan Mo-po said.
The fund, established in 2009 to support the issuance of Silver Bonds, iBonds and alternative bonds under the government bond program, has a balance of about HK$150 billion.
The majority of bonds issued under the program will be held to maturity for redemption by the end of this year, he said.
Since 2024, Silver Bonds have been issued under the infrastructure bond program instead, with the proceeds being credited to the Capital Works Reserve Fund, Chan said.
Therefore, the government will introduce a resolution to the LegCo to enable the transfer of the accumulated surplus after deducting outstanding bond balances and interest payments, etc., to the government account, he said.
Authorities will also transfer HK$15.8 billion from 36 purpose‑specific funds to their account after carefully assessing the individual circumstances of the funds, Chan said.
The government revised the financial arrangements of four funds on the premise of supporting their operations in the next five years and closed a fund which has accomplished its policy objectives and two funds for which objectives can be met more effectively under the established funding mechanism, and brought back their unspent balances, he said.
They consolidated six funds into three for enhanced efficiency in the use of resources and maintained the financial arrangements of the remaining 23 funds, Chan added.
