A local economist on Tuesday suggested the government reduce spending on education to save money.

Financial Secretary Paul Chan earlier revised the estimated government deficit for the current financial year, doubling it to around HK$100 billion due to poor performance in the asset markets.

Speaking on an RTHK radio programme, Terence Chong, executive director of Chinese University's Lau Chor Tak Institute of Global Economics and Finance, said the government could link education spending to the student population.

"If the number of students drops, there's no reason for the government to increase education expenditure," he said.

"Should we think about reforming education spending and pegging it against the student population? If student numbers fall, shouldn't we reduce spending?"

He said it would be difficult for the government to save money by cutting civil servant pay or reducing the civil service establishment.

Chong said such a move would only lead to government workers opting to work in the private sector instead, with public services affected as a result.

Meanwhile, lawmaker Wendy Hong said the government could consider recovering education costs from non-local university students.

Hong, who's a member of Legco's financial affairs panel, said such students are only charged HK$150,000 to HK$180,000, even though the annual cost of their education is HK$300,000.

"It is a gradual process. Of course, with the increased cost, their interest to come and study in Hong Kong might be reduced. We can offer scholarships at the same time to attract those in the top-tier," she said.