The Hong Kong government is reportedly set to revise its HK$2 public transport fare scheme, which is aimed at elderly residents and individuals with disabilities, as part of its efforts to mitigate the growing financial burden of the program amid increasing budget deficits. According to local media sources, including Ming Pao and HK01, these amendments may limit eligible users to eight trips per day and cap usage to 240 times per month.
The current fare concession scheme, launched in phases starting back in 2012, allows people aged 60 and above, along with qualifying persons with disabilities, to benefit from significantly reduced public transport costs. Under the expected changes, the flat fare of HK$2 will likely remain for trips costing less than HK$10. For trips exceeding this fare, beneficiaries would need to cover 20 percent of the fare cost. This shift aims not only to ease the financial strain on the city's budget but also to curb instances of fare abuse observed since officials began stringent inspections.
The financial secretary, Paul Chan, is anticipated to address this issue during the upcoming 2025-26 Budget address, as previous announcements indicated astronomical spending on the program. The latest figures showed expenditures for the HK$2 concession reached nearly HK$4 billion, marking more than 200 percent increase from the HK$1.3 billion recorded for the 2019-20 fiscal year. With the total annual reimbursements to public transport operators predicted to rise to as high as HK$6 billion by 2024-25, the government is compelled to find viable solutions to alleviate this budgetary strain.
The introduction of trip limits on the HK$2 fare scheme has sparked discussions among economists and social advocates. While some insights suggest the revisions could potentially save the government around HK$100 million to HK$300 million per year, various experts caution against such measures. An economist highlighted concerns indicating these changes might inadvertently lead to increased government spending if eligible passengers adjust their travel habits, opting for longer journeys due to the new limits.
Currently, over 2.4 million individuals benefit from the concessionary fare scheme. This significant demographic includes not only elderly residents but also various eligible persons with disabilities. The government’s rationale for revising the fare scheme is framed not just around fiscal responsibility but also reiterates its commitment to fostering inclusiveness and community engagement for these vulnerable groups.
Past inspections conducted by the government had identified instances of suspected abuse concerning the HK$2 fare scheme, with reports indicating over 3,000 inspections resulted in referrals for police investigation for those suspected of misusing the fare discounts. These enforcement actions commenced alongside rising calls for the government to tighten controls on the scheme amid budgetary constraints, as projections forecast continued substantial deficits — including one estimated at nearly HK$100 billion for the upcoming fiscal year.
Last year's detected abuse cases ended with two passengers being prosecuted for underpaying fares, illustrating the challenges officials face as they attempt to balance cost-saving measures with the necessity of promoting public access to transportation for the city's most vulnerable citizens. The growing criticisms of the fare concession scheme also highlight broader socio-economic challenges facing Hong Kong, underscoring the need for cohesive strategies to support those who rely heavily on such programs.
On the horizon, the revised fare scheme awaits official confirmation as the financial secretary prepares to announce proposed changes. Stakeholders, both advocates for the elderly and those with disabilities, along with governmental affairs analysts, continue to monitor these developments closely. The outcome of these revisions, poised to affect millions, may set new precedents for public transport affordability and accessibility across Hong Kong.