Hong Kong government forks out two-thirds of HK$90 million tab for HK$2 fare revamp

The Hong Kong government has implemented a significant revamp of its HK$2 transport fare concession scheme, designed for elderly and disabled residents. The changes, which took effect on April 3, were revealed in a Legislative Council finance committee paper and carried a total price tag of HK$90 million. Notably, the government is footing two-thirds of this bill, amounting to a HK$60 million contribution to the overhaul. The core adjustment shifts the subsidy model: beneficiaries must now pay 20% of the actual fare for any trip costing more than HK$10, moving away from the previous flat rate of HK$2 per journey.

This policy shift comes in response to data highlighting potential overuse. In the first year of a real-name registration system, about 220 beneficiaries averaged more than 240 trips per month—over eight trips daily—with one extreme case logging up to 20 journeys in a single day. To curb such usage, a 240-trip monthly cap will be enforced starting one year after the initial changes. The government's stated goal is to enhance the long-term financial sustainability of the program while reducing abuse. The scheme's budget has ballooned from HK$1.2 billion in the 2019-20 financial year to a projected HK$5.17 billion for 2026-27, underscoring the fiscal pressure that prompted the reform.