Almost everyone in the city will benefit from this year's budget, to be delivered by Financial Secretary John Tsang Chun-wah on February 27, according to government sources. 

In his maiden budget since becoming financial chief in July last year, Mr Tsang intended to share the fruits of the strong economy with all the people, while also helping the needy through specific measures, the sources said. 

For example, Mr Tsang planned to raise the old age allowance for those aged 70 and above and was also considering paying an extra month's allowance to the elderly, they said. 

All Hong Kong residents aged 70 or above are now eligible for an allowance of $705HK a month, while those aged 65 to 69 can receive $625HK a month if they pass a means test. 

While the sources said a final decision on the amount of the increase had yet to be made, it is expected that the allowance would be raised to $1,000HK a month for those aged 70 or above, and a means test introduced. Those who do not undergo a means test would retain the $705HK payment. 

The allowance for those aged 65 to 69 would be raised to $705HK and they would still have to pass a means test. 

"We cannot let the elderly enjoy a rise in their so-called fruit money regardless of their wealth," one official said, adding that the administration had to take a prudent approach as the city faced an ageing problem. 

Political parties, meanwhile, expect the government to double the value of health-care vouchers for the elderly to $100HK each. 

Under the scheme introduced by Chief Executive Donald Tsang Yam-kuen in his policy address last year, people aged 70 or above will be given five vouchers a year to subsidise their use of private sector medical services.
However, the value of the vouchers - $50HK each - was criticised as being too mean. 

Measures would also be introduced in the budget to help the working poor, such as broadening the transport allowance to cover more districts and easing the income restrictions for qualifying for the allowance, the sources said. 

The government would also consider changing the pattern of reviewing the Comprehensive Social Security Assistance from yearly to half-yearly, with adjustments made according to inflation. 

The measure would ensure the allowance could be adjusted quickly to reflect the economic situation and better help the poor, the sources said. 

As well as helping the underprivileged, the forthcoming budget should benefit the middle class and business, with another tax rebate likely on top of the cuts to the standard salaries tax rate and profit taxes promised in the chief executive's policy address. 

The budget would also offer more rates relief. 

The sources said the surplus for the 2007-08 financial year was expected to be about $110HK billion, a record high for the administration and four times the government forecast. 

Facing the huge pressure from the public to offer tax relief, the sources said the financial secretary preferred to take one-off measures rather than those that had long-term financial implications. 

Government officials have repeatedly expressed the need for prudence, saying the windfall this financial year has mainly come from fluctuating income such as stamp duty from stocks and land sales, and may not be sustained in coming years. 

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