Hong Kong budget 2026-27: beyond balancing the books, what’s at stake?
South China Morning Post
by Lam Ka-singFebruary 20, 2026
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Hong Kong’s upcoming 2026-27 budget is under intense scrutiny as residents and experts alike weigh its potential impact on the city’s social fabric and economic stability. The government’s recent decision to cut funding for non-governmental organizations (NGOs) by 7% in 2024 has left many, like Simon Leung, struggling to make ends meet. Once a full-time event coordinator for social work programs, Leung now relies on gig jobs after his contract was terminated. His story highlights the broader challenges faced by those working in NGOs, which are often at the frontline of providing essential services and support to vulnerable communities.
The financial strain on NGOs has led to widespread layoffs and reduced capacity to deliver critical social services. This includes mental health programs, youth outreach initiatives, and care for the elderly, all of which have seen significant cuts. Advocates argue that such reductions not only harm individuals like Leung but also weaken the broader safety net that supports Hong Kong’s society. With rumors circulating about an early operating surplus in the next fiscal year, there is hope that Financial Secretary Paul Chan Mo-po might reconsider funding levels to restore some of these essential services.
The stakes are high for both the government and its citizens. While a budget surplus could signal financial stability, critics warn against prioritizing short-term gains over long-term societal needs. NGOs play a vital role in addressing inequality, fostering community bonds, and supporting those most vulnerable to economic shocks. As Hong
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Originally published on South China Morning Post on 2/20/2026