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One-eighth of HK people age 65 or above
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An increasingly aging population in Hong Kong will pose immense pressure on public finances in the next 20 to 30 years, Hong Kong Special Administrative Region ( HKSAR) government Financial Secretary John Tsang said Wednesday.

Presenting his first Budget expenditure to the Legislative Council here Wednesday, Tsang said one in eight persons in Hong Kong is aged 65 or above and that number is expected to rise sharply in the next 20 to 30 years.

"By 2033, that figure will rise to one in four persons," Tsang said, adding that the aging population is an internal challenge for Hong Kong that will have a profound impact on the community and economy.

According to Tsang's presentation at the Legislative Council, every two elderly persons are currently supported by about 12 people of working age in Hong Kong.

By 2033, however, every two elderly persons will be supported by only about five people of working age, a burden on each workingperson that will be more than double of the current level.

Tsang said the tax base from salaries tax will become increasingly narrow because of the decrease in working population while expenditures closely related to the elderly, such as medical, long-term care expenses and social security payments, will increase substantially.

"Therefore, we must endeavor to enhance productivity, control expenditure and invest today in measures that will help to mitigate future pressures on public finance," Tsang said.

Responding to the aging population, the HKSAR government is expected to increase overall expenditure on health care services by two percentage points higher than the actual economic growth rate in the next 20 to 30 years.

(Xinhua News Agency February 28, 2008)

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