Budget 2025: how much will Hong Kong save and does plan differ from past?

Hong Kong’s finance minister has set his sights on cutting expenditure through measures targeting elderly residents, students and civil servants, but work on megaprojects such as the Northern Metropolis will carry on despite the HK$87.2 billion (US$11.2 billion) deficit.

The Post breaks down how much authorities plan to save following the unveiling of Financial Secretary Paul Chan Mo-po’s budget blueprint on Wednesday and whether this year’s edition differs from past versions.

1. How much will be saved?

This year’s budget proposes to cut recurrent expenditure by 7 per cent, or HK$62.4 billion cumulatively, from 2024-25 to 2027-28.

More money will be saved as the government increases the rate of expenditure reduction from the current 1 per cent to 2 per cent for three financial years starting from 2025-26.

2. Where are most of the savings being made?

Authorities will freeze the salaries of the chief executive, top officials, non-official Executive Council members, civil servants, lawmakers, the Legislative Council secretariat, the chief justice, judges of all courts, district council members and others in the judiciary from April. An across-the-board 1 per cent pay rise would cost HK$2.9 billion.