Budget reveals no clues as to civil service pay

Financial Secretary Paul Chan took no position in Wednesday's budget speech on whether civil servants should get a pay rise this year, saying the decision will be put back in the hands of the Executive Council. Last year, Chan used his speech to announce a pay freeze for government workers to help balance the administration's books. But this year, the "Pay Trend Survey" used to calculate potential pay increases will make a comeback, with Exco considering the results provided as one of six factors used to reach to a decision. These also include the state of the economy, cost of living changes, staff pay claims, civil service morale and the government's fiscal position. Chan said earlier in his address that thanks to the "booming economy", capital market, increased tax revenue and fiscal consolidation programme, "public finances have improved sooner than expected." The minister also noted that an ongoing two percent annual reduction in the civil service establishment means a total of 10,000 government posts will be slashed during this term of government. Edited by Thomas McAlinden