Budget Speech

Support for Students from Low-income Families

129.      I am particularly concerned about the educational needs of students from low-income families because education is an important ladder in helping them achieve self-reliance and independence. The existing student financial assistance schemes offer, in many ways, financial support to eligible pre-primary, primary, secondary and post-secondary students. The annual recurrent expenditure involved exceeds
$3.1 billion, benefiting as many as 360 000 students, or around 34 per cent of the total number of students. The Government will give needy students greater support to ensure that their studies will not be affected by lack of financial means.

130.      I propose to relax the income ceiling for the full level of student financial assistance under the means test mechanism starting from the 2011-12 academic year. It is estimated that for the 2011-12 academic year, this measure will provide full assistance to about 75 000 additional students at all levels of study, comprising
64 000 pre-primary, primary and secondary students and 11 000 post-secondary students. The number of students receiving full assistance will increase from currently about 110 000 to approximately 190 000, representing 50 per cent of the total number of recipients. This proposal is expected to involve an additional recurrent expenditure of around $300 million a year.

131.      I propose to adjust the existing tiers of financial assistance for post-secondary students so that more students will be granted full assistance while those not on full assistance will also receive more. In the 2011-12 academic year, about
30 000 post-secondary students will be granted full assistance and approximately
22 000 will receive more assistance. This proposal is expected to involve an additional recurrent expenditure of about $140 million a year.

132.      I also propose to increase the grants for academic expenses for post-secondary students starting from the 2011-12 academic year. They will be given additional grants, subject to the outcome of their means test, for the acquisition, replacement or enhancement of necessary study aids, including computer and related equipment. Each post-secondary student receiving full assistance will be entitled to an additional grant of $1,000 every year. This proposal will involve an additional recurrent expenditure of about $48 million a year.

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