Regina Ip party urges government to cut spending and freeze salaries

Government departments should cut their spending by 5 percent and freeze civil servants’ salaries until the financial situation improves, said New People’s Party chairwoman Regina Ip Lau Suk-yee as the party submitted 16 suggestions for the budget next month.

The party said that, excluding revenue from bonds and funds, the government has seen a deficit for six consecutive years.

Except for the 2021-22 fiscal year, the actual deficit in the past five years has exceeded HK$200 billion and the government’s fiscal reserves have fallen to an 11-month low.

Regarding minimizing public spending, Ip, who is also the Executive Council convener, suggested the administration reduce operating expenses by 5 percent and freeze civil servants’ salaries until the financial situation improves.

She also called on authorities to stop recruiting new civil servants for six months and to introduce a salary adjustment mechanism correlating with civil servants’ work performances.

But when asked whether the party had made suggestions regarding the HK$2 transport subsidy for those over 60 years old, Ip said: "We will leave it to the financial secretary. We haven't made any recommendations for [the scheme]."

The party also suggested authorities set key performance indicators on mega events in the city while increasing tax rates to enhance the government’s income.

Ip said individuals who have to pay taxes are mostly from the middle class and she believes these people should contribute to the city’s income.

“It would help if everyone paid a little more,” she said.

(Eunice Lam)