No specific restrictions on departmental spending in next year’s budget

The Chief Executive, Sam Hou Fai, issued a directive on May 14 for preparing the fiscal year 2026 budget, but it did not impose specific restrictions on departmental expenditures.

Relevant news was first reported by Cheng Pou recently, emphasizing that the draft budget, unlike in previous years, failed to mention the need to “carefully assess the necessity and reasonableness of all budget expenditures.”

Reportedly, since the previous administration took office, annual budget directives have required all public entities and agencies to carefully assess the necessity and reasonableness of all budget expenditures, ensuring that amounts did not exceed those of the previous year.

According to the Official Gazette, Sam’s executive order also did not, as in previous years, propose a 10% reduction in departmental budget expenditures or set a cap limiting expenditures to this year’s levels.

In terms of civil service staffing control, the previous administration mandated that “the number of personnel in departments and agencies should not exceed the approved staffing benchmark, and additional hires should not surpass the available positions for supervisory entities.”

In contrast, the current administration’s directive states that “departments and agencies within the overall staffing control scope should not exceed the number of positions allocated to the supervisory entities.”

According to the schedule, on June 9, the Financial Services Bureau (DSF) will compile the guidelines and relevant materials for preparing next year’s budget and submit them to the appropriate entities and institutions.

By July 3, the supervisory bodies of these entities and institutions will submit their approved budget materials to the DSF. Finally, on October 8, the budget bill will be presented to the Chief Executive.  YL