Promote citizen participation in public financial management

"Governance and Political System" Thematic Research Series

Proper use and allocation of resources by the government is conducive to social stability and sustainable development. Through public participation, it can help strengthen the acceptability of government decisions and at the same time make resources more in line with the expectations and needs of the public. This provides favorable conditions for maintaining and promoting good governance.

The SAR government's coffers have remained stable in recent years, with the government surplus reaching a new high in 2017/18, reaching HK$138 billion. By the end of March 2018, fiscal reserves exceeded HK$1 trillion for the first time, reaching a new high of HK$1,092 billion.¹. However, surveys show that citizens have considerable reservations about the financial management strategy of the SAR government. Data in 2018 show that 50% of the citizens surveyed are dissatisfied with it, which is significantly higher than the 12% ten years ago. ². On the other hand, the gap between the rich and the poor in Hong Kong society has continued to become serious in recent years. ³.

In addition, this study examines the number of submissions from citizens received by the SAR government during the public consultation period on the budget in the past ten years. The year-to-year figures vary widely, ranging from more than 1,000 to more than 6,000.⁴.

Decisions made today related to public finance will affect the future of the younger generation. From the perspective of young people, this study understands their value orientation towards public participation in public financial management. It also draws on overseas experience and interviews with local experts and scholars to provide feasible suggestions on promoting public participation in public financial management in Hong Kong. We hope that this can give full play to the role of young people in actively participating in society and bring inspiration to the SAR government in improving its governance level.

This study collected data from October to November 2018 through several aspects, including a youth field opinion survey. A total of 520 young people aged 18-34 were interviewed, 24 youth participated in focus group interviews, and 5 experts and Scholar visits.

Main results of the study

1. The young people interviewed affirmed the value of public participation in the public finance decision-making process. The use of public finances directly affects people's livelihood and social development and is closely related to citizens' lives; the public has the responsibility to pay attention and monitor it.
2. More than 60% of the young people surveyed expressed distrust in the SAR government's ability to manage public funds; young people interviewed in the group believed that the government failed to make good use of public funds and deal with social problems. How to strike a balance between adhering to the principles of prudent financial management and continuously improving public services is worth pondering for the authorities.
3. The young people interviewed expressed reservations about the SAR government's performance in listening to the opinions of different stakeholders and explaining the consultation results. The SAR government needs to clearly and with greater intensity show its importance and willingness to absorb public opinion, and give full play to the due function of public consultation.
4. Young people are full of creativity and they also care about the development of Hong Kong. For the younger generation who value participation, the SAR government and all sectors of society should provide them with more channels and opportunities, eliminate the resistance they face, and help them play an active role in participating in society.
5. Providing meaningful and analytical financial information is a basic condition for public participation. Continuous and effective public education is also essential to promote public participation.
6. More than 60% of the young people surveyed are dissatisfied with the performance of the Legislative Council in monitoring the use of government funds. Parliament has the function of supervising the government; if the SAR government and the Legislative Council can adopt a positive attitude and perform their respective duties, I believe it will help win the support and trust of the public.

Research main recommendations

1. To promote a pilot project with the concept of participatory budgeting, the SAR government uses % of salaries tax revenue to invite the public to provide specific ideas on how to use the corresponding amount.
2. Improve the SAR government’s budget consultation work and strengthen the accountability of the budget. 2.1 The public consultation period for the fiscal budget will be advanced so that government officials have more time to sort out, analyze and consider the opinions submitted by citizens. 2.2 During the public consultation period on the Budget, the Financial Secretary reported the latest progress to the public. 2.3 Add a mid-term budget review report.
3. Promote continuous and quality public finance education. 3.1 The SAR Government produces a short video on public finance to briefly explain to the public information such as government budget preparation, public financial management principles, revenue and expenditure distribution, surpluses and reserves, as well as the roles of citizens and the government. 3.2 Non-governmental organizations and groups actively collaborate to improve the effectiveness of society’s supervision of the government’s management of public finances. 3.3 Organize mock budget activities at the secondary school level to enable the younger generation to have a basic understanding of public finance as early as possible.