The 2011 Budget’s HK$46.1 Billion Sweeteners: How Much Went to MPF?

The 2011 Budget’s HK$46.1 Billion Sweeteners: How Much Went to MPF?

John Tsang’s fourth budget, with a HK$71.3 billion surplus and HK$592 billion in reserves, handed out HK$46.1 billion — HK$19.6 billion in one-off relief plus HK$24 billion for the MPF injection. Sweeteners included HK$1,800 electricity subsidies for 2.6 million households, rates waivers, two months’ rent waiver for 730,000 public-housing tenants, and double welfare payments.

What were the injection details?

HK$24 billion for HK$6,000 each to over three million MPF members and 380,000 ORSO members, no income cap. Anyone with an account on budget day qualified. To prevent double-dipping, the MPFA would verify ID numbers and upgrade matching systems — one injection per ID, money arriving no earlier than Q1 2012.

Why no tax rebates?

Tsang said rebates would stoke inflation and reach few people; the MPF injection helped lower, middle and upper-middle earners alike. Insiders said no rebates while inflation ran — zero chance of concession.

Was the injection good for workers?

Free money is nice, but it’s locked till retirement. Better to actively manage your MPF too — compare funds.