Savings brought about by Hong Kong’s revamp of its HK$2 (26 US cents) transport fare scheme are “insignificant” and the programme itself is more generous than similar ones in other major cities, according to the legislature’s research arm.
In a briefing published on Thursday, the Legislative Council Secretariat also said that the recent decision to freeze the pay of civil servants was expected to save about HK$8.7 billion in the coming financial year.
But a plan to cut 10,000 positions from the civil service would provide “limited manpower savings” owing to the number of positions that were unfilled, the research arm said.
Financial Secretary Paul Chan Mo-po announced last month that the HK$2 transport fare scheme for the elderly would be capped at 240 trips a month, while journeys that cost more than HK$10 would be charged at 20 per cent of the full fare price.
The moves, unveiled in the annual budget address, are part of the city’s efforts to rein in a deficit of HK$87.2 billion in the current financial year.
Under the fare scheme, those aged 60 or above and disabled residents only need to pay HK$2 per trip to travel on public transport, with the exception of some routes and services.