Hong Kong’s innovation and technology (I&T), intellectual property and investment promotion departments will receive budget increases of at least 10 per cent in the coming financial year, even as the government moves to curb recurrent spending, while the environmental branch and public broadcaster face sharp cuts of 70 and 28 per cent, respectively.
The Home and Youth Affairs Bureau will expand its civil service workforce by 16 per cent in 2026-27 – the largest increase among all departments – even as the overall civil service headcount shrinks by 2 per cent.
Financial Secretary Paul Chan Mo-po announced in his annual budget on Wednesday that the government’s recurrent expenditure would be cut by 2 per cent in 2026–27, even after the city’s coffers returned to surplus.
However, the individual budgets of all bureaus and departments showed that nine would see rises of more than 10 per cent. These include the Innovation, Technology and Industry Bureau, the Digital Policy Office, the Intellectual Property Department and InvestHK, with increases ranging from 11 to 27 per cent.
The new spending covers initiatives such as establishing the AI Research and Development Institute and expanding the use of artificial intelligence (AI), launching the IP Academy pilot programme, and pursuing measures to help mainland Chinese firms in “going global” and attract strategic industries and enterprises, as outlined in their budgets.
This year’s budget focused on I&T development and pledged significant support and investment in key areas such as AI and intellectual property.
The Housing Bureau recorded the largest overall budget increase, rising from HK$1.96 billion (US$250 million) in 2025-26 to HK$5.34 billion this financial year.
The bulk of that amount – HK$4 billion – was earmarked for the long-term resettlement of Wang Fuk Court residents who lost their homes in the deadly fire in November.
Funding for the Labour Department also rose by 33 per cent, due to higher cash flow needs for the subsidy scheme following the abolition of the Mandatory Provident Fund (MPF) offsetting arrangement.
However, 11 departments tightened their budgets significantly, cutting expenditure by more than 10 per cent.
The environmental branch under the Environment and Ecology Bureau had the largest reduction, with its budget slashed by 70 per cent. This stemmed from reduced cash flow requirements after the government extended the validity of unused relief balances under the electricity charges relief scheme.
The government had earlier announced that households yet to use up their distributed relief could do so before the end of this year.
RTHK, the city’s public broadcaster, and the Information Services Department will have their budgets cut by 28 per cent and 12 per cent respectively, after wrapping up production and promotional efforts for last year’s National Games.
The financial services branch of the Financial Services and the Treasury Bureau, the Legislative Council Commission, and the Government Logistics Department all received increases in their finalised 2025–26 budgets compared with the preliminary budget released last year.
Another of the government’s cost-control measures involved trimming the civil service establishment by 2 per cent in each of the next two financial years.
This will bring the number of government posts down from 192,416 to 187,429 by next March, a reduction of 2.6 per cent.
Several bodies, however, will have their headcounts increased.
The Home and Youth Affairs Bureau will expand from 194 to 225 posts, a 16 per cent increase. Its salary expenditure will increase from HK$137 million in 2025–26 to HK$150 million in 2026–27.
A spokesman for the bureau said the larger workforce was mainly due to the creation of time-limited posts to assist in the preparation and coordination of activities and celebration programmes for the 30th anniversary of the city’s handover next year.
InvestHK and the city’s economic and trade offices will also expand by 5 per cent, excluding non-civil service staff.
The Culture, Sports and Tourism Bureau faces the sharpest reduction, from 401 posts to 310 by next March, representing a 23 per cent decrease.
A bureau spokesman said the posts cut were related to the National Games Coordination Office, which was not being retained following the Games.
Secretary for the Civil Service Ingrid Yeung Ho Poi-yan earlier stressed that the plan did not impose “zero growth” across every department, noting they could still create new posts based on operational needs, provided the need was fully justified. -- SOUTH CHINA MORNING POST
