Hong Kong’s financial chief on Wednesday set aside billions of Hong Kong dollars in his annual Budget speech to support residents affected by the Tai Po fire and to bolster public safety and livelihoods.
In the 2026-27 Budget, Financial Secretary Paul Chan Mo-po confirmed a HK$4 billion ($511.5 million) reserve to bankroll the government’s HK$6.8-billion buyback of the seven residential high-rises ravaged in November’s Wang Fuk Court fire, and announced an allocation of HK$3 billion to reform a citywide building repair subsidy program to help property owners meet safety requirements.
As an additional part of broader post-fire safety reform to combat bid-rigging, the government earmarked another HK$300 million for the Urban Renewal Authority to deliver an enhanced “Smart Tender” platform in the second half of this year, which aims to offer owners professional advice, robust support, and access to a more rigorous pre-qualified list of consultants and contractors. An additional HK$1 billion will be funneled into the government’s Lift Modernisation Subsidy Scheme.
The government is also set to roll out heaps of enhanced tax relief and allowances in the coming fiscal year to ease households’ cost-of-living burdens — among them a HK$3,000 reduction for salary tax and profit tax, as well as a HK$145,000 basic allowance and a HK$290,000 allowance for married persons, all raised from last year.
Child allowances rise by HK$10,000 to HK$140,000, while dependent parent and grandparent allowances increase by between HK$2,500 and HK$5,000, based on the dependent’s age.
The Budget delivers for people’s livelihoods, Chan told the media after his address in the Legislative Council, by shoring up support for households and local businesses while keeping a firm eye on maintaining good fiscal health.
Hong Kong legislator Bill Tang Ka-piu applauded the Budget’s focus on reshaping the city’s building repair industry, which he ranked among the city’s “foremost tasks” after the tragic Tai Po fire that claimed 168 lives.
“The billions earmarked for building repair subsidy review and enhancement, as well as the Smart Tender platform upgrade, indeed, demonstrate the government’s strong resolve to push through building repair reforms,” Tang told China Daily.
The welfare sweeteners bolster an across-the-board reach — covering basic salary earners, working families, married persons and caregivers of children and the elderly, said Tang, while urging greater emphasis on parents and child-rearing in the future to signal the government’s dedication to “pro-family” and “pro-children” priorities.
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Yau Yung, associate dean of Lingnan University’s School of Graduate Studies, in a statement, singled out elevator modernization subsidies as a win-win investment. The initiative, he said, will enhance daily safety for all residents while removing mobility barriers for the elderly and disabled.
Speaking to China Daily, lawmaker Lam Wai-kong credited the government’s sound financial management for the Budget’s return to fiscal balance, which recorded a HK$51.3 billion operating surplus for the 2025-26 fiscal year.
Lam said modest though the fiscal surplus may be, it allows for meaningful tax relief that will put money back into taxpayers’ pockets.
The Budget speech also brought up initiatives to accelerate the city’s green push, including launching a five-year plan to enhance and upgrade recycling infrastructure, promoting electric commercial vehicles, and developing sustainable agriculture and fisheries industries.
Chan Pok-chi, who represents the agriculture and fisheries sector in the legislature, said such measures are in line with national goals regarding green transformation.
