从稳定到增长：创收和支出控制的精确策略

•Social Welfare•Healthcare•Education Part 1：Hong Kong's Fiscal Overview Operating Account Returns to Surplus After Six Consecutive Years of Deficit First time since 1997: Hong Kong records its mostsignificant six-year streak of operating deficits. withinthelimitsofrevenuesindrawingupitsbudget,andstrivetoachieveafiscalbalance,avoiddeficitsandkeepthebudgetcommensuratewiththegrowthrateofitsgrossdomesticproduct. Fiscal risks: Rising Structural Expenditure and Revenue Lag Ageing Population Drives Structural Growth Pressure on Operating Expenditure projected to triple from its2025 level, reaching 15% oftotal population expenditure is projected toundergo exponential growth Expenditure Side:Fiscal Rigidity in Infrastructure Spending Latest Budget ForecastChanges in Operating &Capital Account BalancesStructuralExpenditure Pressures (1)HK’sFiscal Overview Large-scaleinfrastructure(e.g.NorthernMetropolis)fallsunderCapitalAccountexpenditure.Evenifrevenuefallsshort,itisdifficulttoquicklybalancethebudgetbycuttingsuchspending.Moreimportantly,strategicinfrastructureliketheNorthernMetropolisisvitalforHongKong'slong-termdevelopment,leavinglittleroomforsignificantcuts. Lack of Flexibility Developments of New Industry and Market Take Time Interpreting the HKSAR Government's Financial Reporting Framework The Budget should:Highlight the amount of bond proceedsReiterate that the Govt publishes Accrual-based Accounts every December 3 Major Principles for Formulating Proposals Do not require cumbersome Each proposed measure is •Minimisethe affected population •Minimise the reduction of benefits•Safeguarding vulnerable groups expected to deliver a fiscal benefitof at least HK$500 million procedures Part 2:Revenue-generating Measures Examples ofNaming Arrangements for Public Facilities in Hong Kong Naming Rights for Public Facilities in Hong Kong Revenue Allocation: 90% to Government, 10% for Facility Improvement Recommendation 4:OptimiseGovernment Asset Strategy (GSH & TPS) applicants for home ownership returning the public housing unit 95-100%Multiple housing estate> about21%of public housing tenants in 2023'would consider purchasing GSH' TaoCourt,etc. Recommendation 4A: Increase Proportion of GSH Units Recommendation 4A Introduce a Three-Tiered Standard Tax Rate for Personal Income Given the annual electricity sales of45.5 billion kWh, 29 Recommendation8B:MechanismstoBoosttheCarbonMarketandSupportLow-CarbonTransition Recommendation8B:MechanismstoBoosttheCarbonMarketandSupportLow-CarbonTransition Recommendation 9A:Rebalance theShort,Medium, andLong-TermDebtMix Short-and Medium-term Bonds Ensure Liquidity Meets Market Demand railway improvements, and hospital expansions) •Use as collateralto provide liquidity to the market(interbank lending)•The ratio should not be too high, as itincreases asset management companies Long-term Bonds Align with Major Infrastructure Financing Needs Part Three:Expenditure-saving MeasuresTotal Saving: $12.8B HK’sCivil Service is Highly Efficient but the Headcount Ratio is Slightly High HK$162.4billion2024-25 civil service pay expenditure reached:(accounting for 22% of total government spending) Thereis Roomto Optimise The Civil Service Establishment (3)Expenditure Saving The 2025-26 Budget In response to the reduction in expenditure andoptimisationin manpowerutilisation,the civil service establishmentwillbe reduced by 2% each in 2026-27 and 2027-28 financial years,about10,000posts are expected to be cut within this term of Government a reduction of 10,000 positions in theestablishment will not effectivelyreduce expenditures Recommendation10:OptimiseCivilServiceStaffingviaStrategicReplacement Utiliseannual staff natural wastage each year (such as retirement)Optimisehuman resources through internal deployment, instead of filling vacancies on a 1:1 basis financialyearapproximately5,911persons(3.4%) the government could achieve annual savings of~HK$5.35 billion annually Recommendation 11: Assist Government Departments in Leveraging AI provide departments with the necessary funding to procure and develop AI solutions Recommendation 12:Reform the Civil Service Salary Mechanism withPerformance-Based Incentives Recommendation 13: Adjust the "Public Transport Fare Subsidy Scheme" ▪Concession:36% discount on adult single fares; 21% discount on monthly passes.▪Goals:Reduce transport costs for low-income residents; promote social inclusion and poverty reduction. 42 Recommendation 14:Adjust the Monthly Cap for the“$2 Scheme”to 120 Trips High Demand For Public Healthcare, With Rising Expenditure Recommendation 15:Enhance Medical Price Transparency The pricing in the private healthcare market is not sufficiently transparent, with considerable price disparities.Patients frequently encounter the situation of“different prices for the same condition”and“staggering bills” The average pricesfor itemssuch asdoctors’fees, ward charges,etc.,across different s