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Public service costs accounted for lower than 4 per cent, or HK$21 billion, of complete income, estimated to be HK$543 billion, in keeping with the 2023-24 funds.
A Put up test discovered charges had been frozen for years and even many years on quite a lot of public companies.
For instance, water costs – priced at as much as HK$9.05 per cubic metre – have been frozen since 1995. The federal government additionally waived 75 per cent of water and sewage costs of non-domestic households throughout the pandemic.
Hong Kong might take ‘yr or two’ additional to attain funds surplus, Paul Chan says
Hong Kong might take ‘yr or two’ additional to attain funds surplus, Paul Chan says
Admission and rent costs for venues below the Leisure and Cultural Providers Division are unchanged since 2013. Reserving an air-conditioned basketball courtroom prices from HK$60 to HK$148 per hour, relying on the time.
Public healthcare costs, in the meantime, had been final adjusted in 2017.
Within the final monetary yr, the Hospital Authority, the statutory physique that operates the town’s public hospitals and clinics, earned HK$5.2 billion from affected person costs, with the payment for attending an accident and emergency unit costing HK$180, for instance.
However the authority nonetheless largely depends on authorities subvention.
The most important share of presidency revenue comes from duties, basic charges, inside income, property and funding.
Chan mentioned the federal government would keep its competitiveness within the international market by holding the tax regime easy. He additionally promised to make sure that underprivileged teams would proceed to obtain help via the social safety internet.
Different methods he talked about included in search of different financing fashions for infrastructure initiatives that concerned longer timelines, probably involving the non-public sector.
Terence Chong Tai-leung, government director of Chinese language College’s Lau Chor Tak Institute of World Economics and Finance, mentioned the federal government was more likely to “lose greater than it beneficial properties”, contemplating the costs’ tiny share of its revenue.
“You may’t profit lots from rising public service costs, however you’ll have an effect on lots of people, particularly the underprivileged,” he mentioned.
Chong added that even when the federal government launched subsidies to scale back the burden of the needy, the transfer was more likely to generate costly administrative prices, which had been additionally wasteful.
Hongkongers hunt for roast hen, different bargains at US warehouse retailer in Shenzhen
Hongkongers hunt for roast hen, different bargains at US warehouse retailer in Shenzhen
The federal government ought to as a substitute give attention to tackling the failure to promote plots of land, which was the crux of the deficit, by enjoyable property curbs to extend market sentiment, he mentioned.
Economist Simon Lee Siu-po, an honorary fellow at Chinese language College’s Asia-Pacific Institute of Enterprise, additionally poured chilly water on the concept.
“The federal government was most likely left with no resolution,” he mentioned. “However what Hong Kong lacks is the attractiveness, each to speculate and to spend within the metropolis.”
Lee mentioned it was vital to enhance the general enterprise atmosphere, noting the nationwide safety legislation was one issue affecting international buyers’ confidence within the metropolis, and subsequently affected authorities income.
“Even when we managed to earn an additional HK$100 million from parking tickets each month, our catering companies are dropping a billion {dollars} as residents usually are not spending right here,” he mentioned.
“Shouldn’t we do extra to stimulate enterprise actions, as a substitute of specializing in trivial revenues?”
He added that sluggish enterprise within the retail and catering industries additionally immediately affected land gross sales, one other main supply of presidency income.
Hong Kong public housing supplier predicts HK$4 billion deficit in 4 years’ time
Hong Kong public housing supplier predicts HK$4 billion deficit in 4 years’ time
Requested if the federal government ought to overview the tax base, seen by some critics as too slender, Lee mentioned it was exhausting to generate substantial income from the native financial system, which was sluggish. It could be extra sensible for the town’s financial system to recuperate to pre-pandemic ranges earlier than reviewing the tax base.
Sam Wong Kai-hing, director of Concern for Grassroots’ Livelihood Alliance, mentioned rising public service costs would inevitably have an effect on the needy, who had struggled to profit from the post-pandemic restoration.
“The measure might trigger panic amongst low-income teams – is that this only the start? Will there be extra welfare cuts? ” he mentioned. “They shouldn’t be those to bear the price of a deficit.”
Wong mentioned he hoped the federal government may provide extra assurances to ease their worries.
Quite a lot of residents that the Put up spoke to weren’t pleased with the concept of accelerating public service costs both.
“I don’t thoughts in the event that they cost extra for public sports activities amenities as a result of I don’t use them, nevertheless it’s basically unfair,” mentioned designer Lizzy Lee, 29.
“The federal government’s monetary points usually are not brought on by us. Why ought to widespread residents bear the burden? Everyone seems to be struggling to make ends meet.”
Trainer Alex Cheung, 55, mentioned it was “fallacious” for the federal government to search for cash from residents. “I don’t wish to pay extra for any of those,” he mentioned.
Further reporting by Jack Deng
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