Introduction to The 2025-2026 Budget
Financial Secretary Hon. Paul MP Chan delivered a speech on The 2025-26 Budget yesterday, February 26, 2025 (Wednesday). The budget includes various policies aimed at promoting growth in Hong Kong and reducing the government’s deficits. One of the main topics of concern among Hong Kong citizens is the arrangement of the $2 scheme which has ignited heated discussions online before the release of The Budget 2025-2026. There was speculation that the government would announce the cancellation of the $2 scheme.
Overview of Changes to the $2 Scheme
The $2 scheme is called the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disability. This is a discount program in public transportation for disadvantaged communities. The $2 scheme started from the 2011-2012 policy address delivered by the past Chief Executive Donald Tsang. He suggested that people aged 65 or above and eligible people with disabilities can have a concessionary fare of $2 a trip at any time and place on the public transportation system like general MTR lines, franchised buses, and ferries. This policy is aimed at alleviating the burden of transportation fees for disadvantaged communities in Hong Kong. On February 27, 2022 (Sunday) the eligible age of 2 dollars scheme was lowered to 60. The discount on public transportation also extended to include red minibusses, kaitos, and tramways.
In the 2025-2026 Budget, the $2 scheme remains unchanged in terms of eligible targets. However, the Government will modify the subsidy with limits on the number of trips and the amount of money spent per month. For trips costing more than $10, fares will be discounted by 80%, different from the previous ‘one size fits all’ approach that set every trip at $2. Beneficiaries will continue to pay $2 for trips with fares below or equal to $10. The limit on the number of trips will be set at 240 per month. Hon Paul MP Chan claimed that this approach preserves the policy’s intent meanwhile strengthening the sustainability of the scheme and minimizing negative impacts on disadvantaged people.
Minibus station in Sha Tin (Photo by: Anna Wong)
Before this Budget speech was delivered, there were various rumors about the $2 scheme, which received negative feedback from the public and sparked some anger on the internet. After the release of The 2025-2026 Budget, people of different ages have contributed their opinions about this policy changes. The majority believed that it remained within an acceptable range.
Public Reaction to the Changes in the $2 Scheme
Most of the less affected groups, the young generation for instance, gave positive feedback for these changes. “This will definitely damage the interest of the elderly but I think 240 times is enough for them. And for the policy that trips costing more than $10 will get an 80% discount, I think most of the trips that HongKonger take will cost more than $10, so people who are advantaged by this policy will pay much cheaper fees than other people,” said Nettie Wong, a 19 years-old Social Sciences student who had just ended her lesson at HKU.
Middle-aged people who might also be less impacted by this policy also kept an open-minded opinion. “I think limiting trips in discounts is not few, and the discount is quite high actually. I think it won’t cause a very high burden to these disadvantaged communities. For the government, it can help save some as we know Hong Kong has many elderly and a serious aging population. Overall, I think this can both benefit disadvantaged communities and help save some money for government,” said Jay Lee, a 44 years-old office employee walking around in Sha Tin.
One interviewee from the elderly community also commented that this policy is acceptable and understanding. “I think this is also a possible method during the huge deficits in Hong Kong. Although I think it doesn’t help a lot, it at least can help some. I think this will definitely damage my interests, just depends on how much it damages. For the elderly like us who are still working, there is definitely some damage since we need to take more trips. The biggest concern is across the sea which is from Kowloon to New Territories and this will affect more. It must be over $10 per trip. For 240 times I think it’s ok and think 240 times per month is enough and acceptable. Generally speaking, I think this is acceptable,” said Mr. Ho, a 71 years-old man working in a bank company who came to the Central and Western District Office to get the hard copy of The 2025-2026 Budget.
Central and Western District Office distributing materials related to the 2025-2026 Budget (Photo by: Anna Wong )
“Although I think this may be a concern it may be just the start of a decrease in the discount of the $2 scheme. There was some rumor before this Budget appeared in which people thought they would eliminate the $2 scheme, and even Executive Chef walking on the flower market been asked about details of $2 scheme. I think they might have some postponement in canceling or decreasing the discount program of this. Maybe next time the Budget will also have some changes. I think this is inevitable as we know about the deficits the Hong Kong government has right now. At that time I think people will start to have more negative repercussions,” said Mr. Ho.
The government’s intention in establishing the $2 scheme was to assist disadvantaged individuals in society. For those amendments in the policies, the feedback received from different ages ranges was not harsh or unacceptable for Hong Kong citizens. Although the 2025-2026 Budget includes no extreme changes in the $2 scheme, some people might still raise a concern that this scheme will be canceled due to the continuous deficits in the Hong Kong Government.
Apart from saving money on the existing project, the Hong Kong government should think of how to enhance the economic development of Hong Kong. Although some projects boosting Hong Kong’s economic development are already in progress, the result of the benefits is still unknown. Facing the deficits challenges and changes of the Hong Kong society, and it is crucial for the government to take adequate steps.
Bus station in New Town Plaza (Photo by: Anna Wong )