The financial resources available for the education sector next year will be comparable to those available this year, the Financial Secretary said today.

Speaking at the 18th Congregation for the Conferment of Honorary Degrees at City University, Henry Tang stressed that the Government has always accorded a high priority to education.

"Beyond a doubt, education is an investment for our future generations," he said, noting that almost one-quarter of the overall budget is earmarked for education.

"In absolute terms, the expenditure has been growing - from $36.7 billion in 1997-98 to the estimated $49.3 billion in 2003-04. That is a 34% increase over the past seven years."

Spending cuts not uniform across departments, bureaux

Since the Government and the public recognise that it is not sustainable to run fiscal deficits year after year, Mr Tang had earlier announced that he hoped to rein spending in by 2008-09. This translates into an 11% cut, spread over five years.

"The reductions are moderate and are not uniform across all policy bureaux, having regard to the special needs of certain policy areas and the human elements involved," he said.

"Whereas all sectors in our community should contribute to the efforts in containing public expenditure, I would like to tell you categorically that the reductions to be shouldered by the education sector will be lower than the average 11%. Indeed, the total resources available to education in 2004-05 will be comparable to that in 2003-04."

Arthur Li to determine how to allocate education funds

The allocation for subsequent years is subject to further deliberations and discussions. In the end, it will be up to Arthur Li, as Secretary for Education & Manpower, to decide how to spend the money budgeted for his sector.

"I do not underestimate the challenges Arthur has to face. I understand he has been conducting consultations among the various constituencies in the education sector - including university funding for the next triennium from 2005-06 to 2007-08 - and I believe you will certainly help him arrive at a consensus that reflects the aspirations of this great community."