Hong Kong’s Public Service Department have been ordered to freeze their headcounts for 2021-2022 and cut recurrent expenditure by one per cent for the following fiscal year.
A union leader said the news, given by Secretary for Finance, Paul Chan Mo-po (pictured) while delivering the Special Administrative Region’s annual Budget, would result in a significant increase in workloads.
Mr Chan said the Government would set an example by cutting expenditure so as to strengthen fiscal discipline with the city facing a record deficit of HK$257 billion ($A42.8 billion) for the current fiscal year and annual deficits expected to continue for a number of years.
Mr Chan said the one per cent cut in Departmental spending would lead to savings of HK$3.9 billion ($A65 million) and would mainly be achieved through enhanced efficiency and adjusting priorities.
“Day-to-day operations and public services will not be affected,” Mr Chan said.
“While it seems not too difficult to achieve the one per cent cut in recurrent expenditure, there is limited room for curbing expenses related to personal emoluments which account for about 60 per cent of recurrent expenditure of Departments,” he said.
A Government source said hiring could still be carried out to replace Public Servants who retired or quit.
Permanent Secretary for Financial Services and the Treasury, Alice Lau Yim said the one per cent cut could be achieved by measures such as reducing utility bills and outsourcing more jobs.
“The one per cent target is challenging, but we are confident that we can do it,” Ms Lau said.
President of the Hong Kong Chinese Civil Servants’ Association, Li Kwai-yin said the spending cuts and overall hiring freeze were “understandable” as Public Servants should “ride out the difficult times” with the public amid a record deficit.
“Civil Servants will be facing a heavier workload given a zero growth in manpower. The average output per worker has to be increased so as not to affect the services provided,” Ms Li said.
“Even though one per cent might not be too much, Departments will really have to work hard to locate more areas to save expenditures,” she said.
Hong Kong, 26 February 2021
