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SCS: The Adjustment of Civil Service Expenditure in the 2026-27 Draft Estimates of Expenditure

HK

SCS: The Adjustment of Civil Service Expenditure in the 2026-27 Draft Estimates of Expenditure
HK

HK

SCS: The Adjustment of Civil Service Expenditure in the 2026-27 Draft Estimates of Expenditure

2026-04-13 16:34 Last Updated At:04-14 10:23

SCS's opening remarks at LegCo Finance Committee special meeting

Following is the English translation of the opening remarks by the Secretary for the Civil Service, Mrs Ingrid Yeung, at the special meeting of the Legislative Council Finance Committee this afternoon (April 13):

The Secretary for the Civil Service, Mrs Ingrid Yeung, Photo source: reference image

The Secretary for the Civil Service, Mrs Ingrid Yeung, Photo source: reference image

Chairman,

Among the matters related to the civil service in the 2026-27 Draft Estimates of Expenditure, I would like to focus my introduction on the following items.

The first item is the civil service establishment. The entire Government has continued to implement the fiscal consolidation programme and strictly contain the growth of its operating expenditure, which has achieved certain results. In line with the Productivity Enhancement Programme and in order to optimise the use of manpower resources, we will reduce the civil service establishment by 2 per cent each in 2026-27 and 2027-28 basing on the establishment of the preceding financial year. Together with the establishment reduced under the zero-growth policy for the civil service establishment in previous years, a cumulative deletion of over 10 000 posts is expected within this term of Government.

All bureaux and their departments (B/Ds) have considered such factors as the overall service demand, operational needs and vacancy situations for making arrangements for the 2 per cent reduction in the civil service establishment in 2026-27. The overall civil service establishment will be reduced to an estimated level of about 188 000 posts by April 1, 2026.

Photo source: reference image

Photo source: reference image

I would like to take this opportunity to reiterate that the reduction in establishment is the most direct way to reduce the actual expenditure, as the financial provisions for personal emoluments allocated to B/Ds are calculated based on the establishment rather than the strength. With the reduction in establishment, the provisions allocated to them will be directly reduced.

I understand that concerns have been raised about the impact of the reduction in establishment on the development of large-scale projects and the efficiency of daily services. I would like to take this opportunity to clarify the matter. Reduction in the civil service establishment is achieved by optimising manpower arrangements through reorganisation and reprioritisation of work while maintaining the efficiency of public services. All posts will be reviewed to ascertain the necessity to retain them. For posts that are essential to the provision of public services, they will be retained. Departments with actual needs can still apply for additional manpower. For instance, we will deploy internal manpower and create time-limited posts as necessary for the preparation of the Asia-Pacific Economic Cooperation Finance Ministers' Meeting 2026.

As for civil service pay adjustment, we are taking forward the relevant work of the 2026-27 civil service pay adjustment in a gradual and orderly manner in accordance with the established mechanism. The 2026 Pay Trend Survey (PTS) is currently under way, and the results are expected to be available in May. The Chief Executive in Council will make a decision on the 2026-27 civil service pay adjustment arrangements having due regard to all relevant factors, including the state of Hong Kong's economy, changes in the cost of living, the Government's fiscal position, the net pay trend indicators derived from the PTS, the pay claims of the staff sides and civil service morale.

The next item is the work on civil service training. The Civil Service College (CSC) will continue to implement the Governance Talents Development Programme to cultivate a pool of governance talent who love the country and Hong Kong and are familiar with the national development and international landscape as well as local circumstances. In addition, the CSC will continue to take forward various initiatives to strengthen the governance capabilities of the civil service. On AI, the CSC will collaborate with the Digital Policy Office to provide training and online learning resources themed around AI to enable civil servants to better grasp the relevant knowledge. The CSC will also continue to enhance elements related to AI and technology application in leadership training for civil servants, enabling leaders to guide their departments in adopting AI more widely to improve public services. The relevant estimated expenditure for 2026-27 is approximately $259 million.

As for medical benefits, the Government will continue to honour its contractual obligation as the employer and provide medical benefits for serving civil servants, pensioners and other eligible persons. The medical services provided by the Hospital Authority (HA) as part of the medical benefits have been included in the HA's overall provision. Regarding Families Clinics and dental services provided by the Department of Health, on top of its regular services, the provision will continue to cover the pilot scheme on provision of dental scaling services via private dental organisations for some civil service eligible persons, the pilot scheme on receiving designated dental services at a medical institution in Shenzhen and the seasonal influenza vaccination pilot scheme.

The Civil Service Bureau will continue to take forward various policies and initiatives, such as expanding the functions of the Public Service Commission to cover Tier II investigation under the Heads of Department Accountability System, and formulating enhancement measures to develop a more rigorous civil service performance appraisal system for differentiating staff performance more effectively.

The Civil Service Bureau, Photo by Bastille Post

The Civil Service Bureau, Photo by Bastille Post

Chairman, this is the end of my introduction. I would welcome questions from Members.

Court of First Instance hands down sentences in incitement to subversion case of "Hong Kong Alliance"

Regarding the case concerning the "Hong Kong Alliance" (the Alliance), Lee Cheuk-yan, Ho Chun-yan and Chow Hang-tung, who were charged with incitement to subversion (contrary to Article 23 of the Hong Kong National Security Law (HKNSL)), following the verdict of conviction delivered by the Court of First Instance of the High Court on August 21, sentences were handed down today (September 11). Chow Hang-tung was sentenced to imprisonment for seven years and three months, and Lee Cheuk-yan was sentenced to imprisonment for seven years. Ho Chun-yan, who had earlier pleaded guilty, was sentenced to imprisonment for five years and two months, and the "Hong Kong Alliance" was sentenced to a fine of $1,500,000.

Prison van arrives at court. Photo by Bastille Post

Prison van arrives at court. Photo by Bastille Post

The court ruled that the present case was of a "serious nature", pointing out that although the HKNSL had been implemented at the material time, some individuals were still unwilling to accept the exercise of sovereignty by the state over the Hong Kong Special Administrative Region, nor were they willing to accept the constitutional order established by the Constitution of the People's Republic of China (the Constitution) and the Basic Law. The defendants engaged in criminal acts of incitement amid a turbulent and unsettled social atmosphere, putting national security and public order at greater risk. The defendants possessed mobilising power and influence in Hong Kong. Their criminal activities persisted for as long as 14 months, and were committed through various activities and online platforms. The relevant activities were city-wide with an extensive reach, influencing people of different age groups, and their potential harm must not be underestimated. Despite the defendants' belief that their agenda might be in breach of the Constitution and the HKNSL, they recalcitrantly pursued their course of conduct after the HKNSL came into effect, vigorously advocating and promoting their agenda, which was premeditated.

The court reiterated in its reasons for sentence that the HKNSL had no retrospective effect and that the defendants were put on trial not because of their political ideology or their conduct before the HKNSL. They were convicted solely on the basis that they had committed acts prohibited under the HKNSL after the HKNSL came into effect.

The Chief Executive, Mr John Lee, Photo source: reference image

The Chief Executive, Mr John Lee, Photo source: reference image

The Chief Executive, Mr John Lee, said, "The court has pointed out clearly in its reasons for the verdict of conviction handed down earlier that the very aim of the Alliance's agendas was to overthrow and undermine the leadership by the Communist Party of China (CPC) under the Constitution. The defendants intended to cause others to lose confidence in the CPC by stirring up hostility and causing division, so as to achieve the objective of undermining the fundamental system of the People's Republic of China (PRC). After the implementation of the HKNSL, the defendants refused to pull back from the brink and were bent on acting wilfully, attempting to make use of the Alliance to subvert state power.

"This case shows that anyone who intends to incite subversion and endanger national security will ultimately be punished in accordance with the law and such acts will absolutely not be tolerated. The law never allows anyone to openly harm one's own country and compatriots by employing confounding tactics under the pretext of human rights, democracy and freedom. As pointed out by the court in the reasons for verdict, what the defendants did in this case had already gone beyond the scope of lawful freedom of expression, and constituted acts of inciting others to subvert state power by unlawful means. The sentences today demonstrate the court's confirmation that the offences committed by the defendants were extremely serious and warrant severe punishment to uphold the rule of law."

The case was sentenced at West Kowloon Magistrates’ Courts. Photo by Bastille Post

The case was sentenced at West Kowloon Magistrates’ Courts. Photo by Bastille Post

A spokesman for the Hong Kong Special Administrative Region (HKSAR) Government said, "The Constitution of the PRC is the fundamental law of the state. The Constitution and the Basic Law jointly establish the constitutional order of the HKSAR. The basic and core components of the Constitution, such as those related to constitutional order, national sovereignty, unity and territorial integrity, shall apply to the HKSAR. The core of the constitutional order of the state is the establishment of the CPC's position as the governing party. The leadership by the CPC is the core of the fundamental system of the PRC established by the Constitution. Article 1 of the Constitution expressly prohibits any organisation or individual from damaging the socialist system. Article 22 of the HKNSL explicitly prohibits anyone from organising, planning, committing or participating in acts by force, threat of force or other unlawful means with a view to subverting state power, such as overthrowing or undermining the fundamental system of the PRC established by the Constitution, or overthrowing the body of central power of the PRC. Under the Constitution, overthrowing or undermining the leadership status of the CPC is tantamount to overthrowing or undermining the fundamental system of the PRC established by the Constitution to which Article 22 of the HKNSL refers."

The spokesman also pointed out, "The HKSAR Government has noticed that various western countries, anti-China organisations, politicians and foreign media have recently launched malicious attacks and smears on various cases including this case. The HKSAR Government has reiterated on multiple occasions, just as the court has stated clearly, the defendants of this case were put on trial not because of their political views or beliefs. The court would only consider the laws and evidence relevant to the case to decide whether the prosecution is able to prove the charge beyond reasonable doubt. All defendants received a fair trial strictly in accordance with laws applicable to Hong Kong, as guaranteed by the Basic Law and the Hong Kong Bill of Rights, free from any interference."

The spokesman stressed, "The HKSAR Government has the responsibility to safeguard national security, and will resolutely combat acts and activities endangering national security. In this regard, the HKSAR Government will, in accordance with the principle of the rule of law, ensure that laws are observed and strictly enforced to bring offenders to account, and prevent, suppress and punish acts and activities endangering national security in accordance with the law."

Photo source: reference image

Photo source: reference image

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