HONG KONG: Hong Kong will cut thousands of civil service jobs and boost spending in artificial intelligence as it seeks to tackle an increasing deficit, authorities said Wednesday.
Finance Secretary Paul Chan said during a budget speech that there would be a “cumulative reduction” of government recurrent expenditure by 7 percent from now until 2027-2028. Hong Kong’s deficit had reached $87.2 billion Hong Kong dollars ($11.2 billion) for the financial year of 2024-2025, making it the third straight year of losses.
“It gives us a clear pathway toward the goal of restoring fiscal balance,” Chan said.
He said 10,000 civil servant posts would be cut by April 2027, representing a reduction of about 2 percent of the civil service in each of the next two years. Salaries will also be frozen in the civil service this year.
Chan also said that up to $195 billion Hong Kong dollars ($25 billion) worth of bonds will also be issued in the next five years to ensure progress of important infrastructure projects, with more than half used to refinance sort-term debt.
To boost income, Hong Kong will also raise its airport departure tax from 120 Hong Kong dollars ($15.50) to 200 Hong Kong dollars ($25.70) from the third quarter of the year, representing a 67 percent increase.
Separately, Hong Kong will also make a push into artificial intelligence by leveraging the city’s “internationalized characteristic to develop Hong Kong into an international exchange and co-operation hub for the AI industry.”
Authorities have also earmarked $1 billion Hong Kong dollars for an AI research and development institute, and will set up a $10 billion ($1.29 billion) innovation and technology fund to invest in “emerging and future industries of strategic importance.”
Hong Kong’s finances have been impacted by a weak property sector, as home prices plunged some 30 percent over the last three years. It is also grappling with economic uncertainty and geopolitical tensions as US-China relations deteriorate.
The amount of land premiums paid by developers to the government has declined, hurting Hong Kong’s revenues. Land sales typically made up about a fifth of government income, but this has fallen to just above 5 percent in the last fiscal year.
Hong Kong’s fiscal reserves will shrink 12 percent from $734.5 billion Hong Kong dollars ($94.5 billion) to about $647.3 billion Hong Kong dollars ($83.3 billion) by the end of March, and a further 10 percent in 2025-26, Chan said.
Hong Kong is to cut thousands of civil service jobs and invest in AI to tackle a rising deficit
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Hong Kong is to cut thousands of civil service jobs and invest in AI to tackle a rising deficit
UK Police arrest 86 people at prison protest for Palestine Action hunger striker
- Demonstration outside Wormwood Scrubs held in support of Umer Khalid
- Khalid 1 of 5 people charged in connection with break-in at RAF base last year
LONDON: A protest outside a prison in the UK in support of a man detained for supporting the banned group Palestine Action has led to the arrest of 86 people.
London’s Metropolitan Police said a group of demonstrators breached the grounds of Wormwood Scrubs prison in the capital, refused to leave when ordered to do so, and threatened officers. They were arrested on suspicion of aggravated trespass.
The group, several of whom attempted to gain access to the prison itself, were protesting in support of Umer Khalid, who is currently on hunger strike at the facility.
Khalid is one of five people charged in relation to a break-in by Palestine Action members at an RAF base at Brize Norton last year, in which two military aircraft were damaged.
Khalid, who denies the charges, is one of several people who are on or who have taken part in hunger strikes in recent months, all of whom have been held on similar charges for over a year without their cases being brought to trial.
A spokesperson for the UK’s Ministry of Justice said: “The escalation of the protest at HMP Wormwood Scrubs is completely unacceptable. While we support the right to peacefully protest, reports of trespassing and threats being made to staff and police officers are deeply concerning.
“At no point was prison security compromised. However, where individuals’ actions cause risk or actual harm to hardworking staff, this will not be taken lightly and those responsible can expect to face consequences.
“Prisoners are being managed in line with longstanding policy. This includes regular checks by medical professionals, heart monitoring and blood tests, and support to help them eat and drink again. If deemed appropriate by healthcare teams, prisoners will be taken to hospital.”
