The Speech on the 2026-27 Budget

The Speech on the 2026-27 Budget - Part 9

2026-02-25 12:47 Last Updated At：13:32

Budget Speech by the Financial Secretary (9)

A Caring and Inclusive Community

Supporting Work in the Aftermath of Tai Po Fire

233. The Government has provided comprehensive support for those affected from the Tai Po fire. We have just announced the long-term housing arrangements and earmarked $4 billion accordingly.

234. To reduce the risk of bid-rigging in building repair works, the URA will launch an enhanced version of "Smart Tender" in the second half of this year. In addition to providing a more rigorous pre-qualified list, the URA will render professional advice and support for owners in engaging consultants and contractors. Besides, the URA will provide subsidies to encourage owners to utilise the paid services of "Smart Tender". For these two measures, we propose allocating a total of $300 million to the URA.

235. DEVB is conducting a comprehensive review of the Operation Building Bright 2.0 to draw up a new subsidy scheme. We will earmark $3 billion accordingly. Moreover, we will allocate $1 billion to extend the Lift Modernisation Subsidy Scheme to provide subsidies to property owners.

Caring for the Elderly

236. From the next financial year onwards, the Government will increase the number of Community Care Service Vouchers for the Elderly by 4 000 to 16 000 and the number of Residential Care Service Vouchers for the Elderly by 1 000 to 7 000, involving an estimated full-year expenditure of $1.2 billion and $1.97 billion respectively. The Government will also promote the further development of the elderly care services market, while promoting the parallel development of publicly-funded and market-based services, thereby enhancing the overall service capacity.

237. The Government has been supporting cross-boundary elderly care. Starting this month, the Residential Care Services Scheme in Guangdong has included two more residential care homes for the elderly (RCHEs), resulting in a total of 26 RCHEs covering all nine cities of the GBA. The two-year Pilot Medical Subsidy Arrangement was also launched at the end of last year. The subsidy is subject to an annual ceiling of RMB10,000 per person for out-patient expenses and RMB30,000 per person for in-patient expenses.

238. In addition, the Government will implement new arrangements for portable cash assistance in the middle of this year, under which elderly participants of the Guangdong Scheme, Fujian Scheme and Portable Comprehensive Social Security Assistance Scheme may opt to receive government assistance direct through their accounts with designated Mainland banks.

239. Last year, the Working Group on Promoting Silver Economy announced 30 measures, most of which have achieved positive outcomes. The Government will continue working closely with the industry to promote the silver economy.

Support for Youth

240. We will provide young people with more exchange and internship opportunities in the Mainland and overseas, including introducing a new media thematic internship programme in the Mainland and allocating an additional $60 million for implementing the HYAB Funding Scheme for International Youth Exchange continuously.

241. We will provide around 3 600 short-term internship placements in government departments and public bodies for post-secondary students, enabling young people aspiring for a public service career to gain experience.

Women's Development

242. To promote all-round women's development, the annual funding for the Women Empowerment Fund will be increased to $30 million starting from the next financial year.

Support for Working Families

243. To strengthen the support for working families, the total number of service places of aided standalone child care centres has exceeded 1 530 with an increase of about 12 per cent over last year.

Support for Persons with Disabilities

244. The Government will enhance rehabilitation services by providing about 450 additional places for day, residential and pre-school services in the next financial year, involving an additional annual expenditure of about $107 million. For school children receiving On-site Pre-school Rehabilitation Services, the Government will provide bridging and support services during their first term in primary school. This measure will involve an additional annual expenditure of about $260 million.

Promoting Employment

245. The Re-employment Allowance Pilot Scheme has been well received. Since its launch one and a half years ago, over 37 000 placements have been made. The provision for the scheme will be increased to $222 million in the coming financial year.

246. The Employment Programme for the Elderly and Middle-aged aims to encourage employers to hire persons aged 40 or above and provide them with on-the-job training. Employers will, for employing each eligible person, receive a maximum on-the-job training allowance of $5,000 per month for three months to 12 months. The programme subsidised nearly 4 500 placements last year. Besides, the ERB has launched two new courses dedicated for persons aged 50 or above.

Enhancing Healthcare Services

Advance Primary Healthcare Development

247. The Government will deepen development of primary healthcare in the community by launching the Primary Healthcare Co-care Network, which will extend screening to include hepatitis B and other diseases, strengthen cross-disciplinary collaboration, and improve support services such as medical laboratory testing and diagnostic radiology. The target participation for the first five years is around 700 000 persons. The Government will also implement the community drug formulary and launch the community pharmacy programme in the second half of this year, bringing more convenience to the public.

248. The Elderly Health Care Voucher Pilot Reward Scheme will be extended by two years until end-2028. Elderly persons who have accumulated voucher spending of $1,000 or above within the same year on specific primary healthcare services such as examination and chronic disease management will have a $500 voucher reward. The measure will involve an additional expenditure of about $1 billion.

Deliver Public Healthcare Services

249. The 16 projects under the First Hospital Development Plan will be completed progressively. Taking into account the latest demographic structure and distribution, we are reviewing the scale and priority of projects under the Second Hospital Development Plan. We will make an announcement in due course and take forward the projects in an orderly manner.

Enhance Private Healthcare Services

250. To enhance the price transparency of private healthcare services such that members of the public can gain a more comprehensive understanding of price information before making medical decisions, the Government will introduce the relevant regulation to the LegCo this year.

(To be continued.)

Hong Kong's 2026-27 Budget Focuses on Innovation, AI, and Economic Development Opportunities.

Budget: Driving High-Quality, Inclusive Growth with Innovation and Finance

The Financial Secretary, Mr Paul Chan, unveiled today (February 25) his 2026-27 Budget. He noted that this year marks the beginning of the National 15th Five-Year Plan, and the country's sustained high-standard two-way opening-up, coupled with scientific and technological and innovation, has presented Hong Kong with new opportunities. Hong Kong must foster new quality productive forces in accordance with local conditions. Leveraging the edge of having close connectivity with the Mainland and the world, and with a large pool of talent, Hong Kong will facilitate enterprises in opening up new markets.

Mr Chan proposed a series of measures to drive innovation and technology development, including establishing the Committee on AI+ and Industry Development Strategy; taking forward the Sandy Ridge data facility cluster project; promoting AI training; and accelerating digital intelligence transformation of the Government. He noted that Hong Kong is pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all. Moreover, the International Clinical Trial Academy will also be established to help enable the Mainland's biomedicine technology to go global, attract foreign investment, and help develop Hong Kong into an international health and medical innovation hub.

To facilitate the development of new industrialisation, the Budget has earmarked resources for establishing in Hong Kong the first national manufacturing innovation centre outside the Mainland, and the New Industrialisation Elite Enterprises Nurturing Scheme will be launched. The Government will promote the full integration of technological innovation and industrial innovation through key infrastructure, including the Hong Kong Park of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone and San Tin Technopole.

On finance, Hong Kong will proactively align with national development strategies, advance the internationalisation of the Renminbi, and continuously reform the securities market. The Government will legislate this year to enhance tax regimes for family offices and funds, as well as establish licensing regimes for digital asset dealing and custodian service providers. On tourism promotion, to support "tourism is everywhere" and promote "urban-rural integration", the Government will launch the Northern Metropolis Urban-rural Integration Fund as a pilot scheme to encourage the introduction of rural tourism projects.

Regarding land supply, Mr Chan said that specific land sale arrangements will be announced on a quarterly basis after careful consideration of market conditions and other relevant circumstances, for the steady development of the market. In view of the vacancy rate in the non-residential property market, and considering supply and demand, the Government will not put up general commercial sites for sale in the coming year.

On public finances, Mr Chan noted that tax revenue has increased over the past year, as a result of the booming economy and capital market. Coupled with the reinforced fiscal consolidation programme gradually bearing fruit, public finances have improved sooner than expected. In 2025-26, the Operating Account will return to a surplus ahead of schedule, while the Consolidated Account will be broadly balanced after taking into account the net proceeds from bond issuance. The Government will continue to strictly contain the growth of its operating expenditure and take forward the Productivity Enhancement Programme as planned. Moreover, to relieve the economic pressure faced by the people, the Budget proposes increasing the basic allowance, the single parent allowance, the married person's allowance, the child allowance, the allowance for maintaining a dependent parent or grandparent, and the deduction ceiling for elderly residential care expenses starting from the year of assessment 2026/27.

In conclusion, Mr Chan said that the global environment has remained volatile over the past year, and Hong Kong has continued to undergo economic transformation. Technological innovation, in particular the development of AI, has brought a mix of opportunities and challenges. Yet, Hong Kong has always thrived amid changes and progressed through innovation. While transformation is ongoing, the economy has recalibrated its course and is advancing steadily. Hong Kong must make full use of its strengths and leverage the resolute support of the country to speed up and scale up economic development sustainably, creating better development opportunities for the people and enhancing their quality of life.

For more details on the 2026-27 Budget, click here.