Rise in recipients: The increasing CSSA workload has taken a toll on Government resources.

The total Comprehensive Social Security Assistance caseload in January reached 267,609, a year-on-year growth of 9.8%, the Secretary for Health, Welfare & Food said.

"The number of families and individuals requiring financial support by the Government is also bound to increase amid the current economic situation and high unemployment," Dr Yeoh Eng-kiong said.

The CSSA rates, therefore, had to be adjusted "to ensure existing resources go further to meet the increasing demand and to ensure the sustainability of the safety net".

Savings from the adjustment - $1.5 billion in CSSA spending, and $199 million in SSA spending in a full year - will enable the Government to meet an increasing number of cases.

Despite continuous deflation since 1999, Dr Yeoh said no adjustment had been made to the CSSA and Social Security Allowance standard payment rates.

In total, there had been a cumulative over-adjustment of 12.4% up to March last year.

Based on this growing trend, Dr Yeoh estimated that the approved provision for CSSA in 2002-03 of $16 billion will fall short of requirements and that the total needed for 2003-04 will exceed $18 billion.

Dr Yeoh noted that the Legislative Council's Finance Committee approved a supplementary provision of $250 million for the CSSA for 2002-03 at its meeting last Friday.

The 2002-03 CSSA provision was already 11.1% higher than the actual 2001-02 expenditure of $14.4 billion.