Home Business Hong Kong Considers Scaling Back Senior Transport Subsidies Amid Budget Pressures

Hong Kong Considers Scaling Back Senior Transport Subsidies Amid Budget Pressures

HK HKD2 scheme

Financial Secretary Paul Chan signaled potential cuts to Hong Kong’s popular HK$2 elderly transportation fare on Sunday, suggesting the widely-used subsidy may no longer be financially sustainable in its current form.

In a candid radio interview, Chan indicated broad public agreement that the low-cost transit program needs restructuring. The scheme, which allows residents over 60 to travel on public transportation for just HK$2 per trip, has seen escalating expenses since the eligible age was lowered from 65.

“The intentions behind the program were very good,” Chan said, “but we must now critically examine its long-term financial viability.”

The impending budget speech on February 26 could reveal specific modifications to the popular subsidy. Chan hinted that potential savings might also extend to education and healthcare sectors, with universities’ substantial financial reserves potentially facing scrutiny.

Despite signaling potential cuts, Chan emphasized that the government aims to “minimize the effects of expenditure reductions on the public.”

The potential changes come as Hong Kong confronts significant budgetary challenges, with the financial secretary suggesting that collective effort will be necessary to address the government’s deficit.

Detailed proposals are currently under internal review, with Chan’s office collecting and assessing various perspectives on potential reforms.

The announcement has sparked widespread speculation about the future of one of Hong Kong’s most appreciated social welfare programs.

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