Budget 2025: 2% cut for public universities

Financial Secretary Paul Chan Mo-po proposed a cut of 2% in university grants each year over the next three years to reduce the HK$87.2 billion deficit in his latest budget address today. 

The government will save about HK$2.8 billion in total after the reduction. The public universities will have to return HK$4 billion to the government on a one-off basis in the 2025-26 financial year from their balances of the General and Development Reserve Fund (GDRF).

"I must stress that this funding level is still higher than the HK$63.2 billion in the last triennium,"  Chan told the Legislative Council, referring to automatic annual increases. 

Eight universities receive the grants from the University Grants committee, with 78% used for teaching, 20% for research funding and 2% for professional activities. 

Cheung Chi-keung, the Head of the Department of Educational Administration and Policy at the Chinese University of Hong Kong, warned that funding cuts will have long term consequences.

“Compared to Singapore, if we cut the grant and increase the tuition fee,” said Cheung, “it is not an ideal situation for Hong Kong's education development and ability to attract talent.”

He said it is still affordable for universities to have less grants because they have sufficient reserves. 

Some students are worried the funding cut will impact their studies. 

Hannah Li, a finance student at Hong Kong Baptist University, is worried university-funded workshops could disappear. 

April Zhao, a doctoral student in social work at Hong Kong Baptist University, said she is concerned it will impact student resources.