In a bid to honor its elderly citizens, Hong Kong introduced a transport scheme that allows seniors to travel on public transport for just HK$2 per ride. While this initiative initially aimed to ease mobility for older residents, it has now overwhelmed public finances, revealing the cracks in what was once a commendable social policy.

Launched in 2012, the program took a significant turn in 2022 when the government lowered the eligibility age from 65 to 60. Consequently, the annual costs skyrocketed from HK$500 million to almost HK$4 billion in the previous fiscal year, with projections indicating expenses could hit HK$6 billion in the next. This means that the scheme now accounts for 0.7% of government annual operating expenditure—an increase from just 0.2% five years ago. Both the MTR Corporation and bus companies have received over HK$1.5 billion each in reimbursements for this surging cost.

Compounding these financial woes is the reality of an aging population. Currently, 23% of Hong Kong's population—around 1.7 million people—are aged 65 and above, a figure projected to rise to 28% by 2028. This not only increases the number of beneficiaries but also intensifies the demand for social support, putting further pressure on the already strained government budget.

As if facing a perfect storm, Hong Kong's treasury is also grappling with a staggering deficit, having exceeded HK$200 billion in just the first five months of this fiscal year. With land sales revenue—the government's traditional financial backbone—reaching just 11% of its projections, the time for revisiting this transport scheme has never been more urgent.

Parliamentarian Peter Koon has proposed increasing the elderly transport fare to HK$4 or HK$5 to better align with the current economic climate and rising public transport costs, which have surged approximately 30% since the program's inception. He argues that maintaining the HK$2 fare in light of these realities is unrealistic and unsustainable.

Recent attempts to curb expenses through stricter enforcement have shown limited success. Authorities launched more than 480 operations across 970 routes, scrutinizing over 3,000 suspected misuse cases. Still, only a handful of offenders received penalties, rendering these enforcement measures insufficient against the backdrop of rising expenditure.

Labour and Welfare Secretary Chris Sun insisted the government has no plans to reduce the scope of the initiative. However, maintaining the status quo is becoming increasingly untenable amid declining workforce participation, lower tax revenues, and swelling welfare and healthcare costs.

Adding to the complexity, society's perception of age is shifting, with 60 being considered less “elderly” in a time when healthier lifestyles enable many to remain active in their careers well into their sixties. Government officials have observed that it now represents more of a “middle-age” milestone.

Several proposals have circulated regarding reforms to the scheme, including age-based pricing adjustments or simply reinstating the eligibility age back to 65 for new beneficiaries. Each option brings its own political hurdles, and the challenge lies in how best to balance fiscal responsibility with the commitment to an aging population.

The challenges Hong Kong faces with its HK$2 transport scheme provide critical insights into the interplay between demographic shifts and social welfare frameworks. While the intention of supporting the elderly is commendable, it illustrates how even well-meaning programs can transform into fiscal burdens amidst changing demographics. As discussions for reform intensify, the priority remains: ensuring that the essence of support for Hong Kong's elderly is preserved amidst the financial realities of the 21st century.