Underused funds 'can help ease the fiscal deficit pinch'

Staff reporters

The SAR administration could dip into long-established but underused public funds amid the fiscal deficit, Legislative Council member Andrew Lam Siu-lo said.

He suggested yesterday that the administration conduct a thorough review of various funds, noting that some "often go unnoticed and lack publicity, yet they accumulate significant interest income."

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

Lo, a businessman, noted that, as of September, a total of 43 funds had been established by 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.

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.

Chu Kwok-keung, who represents the education industry, said cutting spending on schools is not a solution and that the SAR should be investing in the sector to attract more talent and maintain quality.

Legco member Peter Shiu Ka-fai said departments should cut expenses by themselves to alleviate the deficit situation.

For example, health authorities are still deploying six to seven staff at each border checkpoint to check body temperature even after the Covid-19 pandemic has ended.

"Staff have told me they were in charge of checking if any traveler is having a fever. But even if they do, the staff would only remind them to see a doctor," Shiu said, questioning the necessity of deploying so many officers.

For its part, the Hong Kong Blind Union said the administration should maintain the HK$2 fare concession for the handicapped.