Financial Secretary Paul Chan on Thursday said a proposed levy on private cars departing Hong Kong is aimed at clawing back government spending on cross-boundary facilities, while dismissing the idea of a fee for all outbound travellers over the potential impact on the public.

During a radio phone-in programme, Chan fielded questions from callers on a wide range of cost-cutting measures detailed in his budget, including tweaks to the HK$2 transport subsidy scheme for the over 60s and the phasing-out of a HK$2,500 student grant.

A caller surnamed Wong said he was confused about the plan to charge private car drivers HK$200 to cross the border, a move the government says should raise about HK$1 billion a year.

"What kind of private cars will be levied? If you’re talking about cross-boundary vehicles with closed road permits, usually they have companies set up on the mainland and travel for business purposes," he said.

"If you wish to boost revenue, why not tax travellers who leave the city via land border control points?"

In response, Chan said quite a lot of money has been spent on cross-boundary facilities, including the Hong Kong-Zhuhai-Macau Bridge.

"Can we recover some of those costs? That is one of our considerations. Currently we're still in the research stage, and everyone can give their views so the Transport and Logistics Bureau and the Financial Services and the Treasury Bureau will consider them," he replied.

As for a departure tax for all travellers at land crossings, Chan said such a move would have quite a large impact on the general public, and this should be "avoided as much as possible".

Another caller was upset with the scrapping of the HK$2,500 student grant, which has been given out annually to the parents of children in kindergartens and primary or secondary schools since 2019.

"Didn't the government tell people to have more children? You cancelled this subsidy, but at the same time provide half a month of extra payment to recipients of social security and Old Age Allowance … What are the middle class like us supposed to do?” asked a woman surnamed Chan.

The financial chief acknowledged her concerns, but stressed that public resources should go to those most in need.

"Right now, this HK$2,500 does not require any means test and everyone is eligible … so we think if we were to cut down on expenditure, it has to come from these areas," he said.

Meanwhile, proposed tweaks to the HK$2 transport scheme for the over 60s also drew a lot of feedback.

"Why cap the number of trips at 240 per month, instead of raising the concessionary fare to HK$3 or HK$4?" asked a man surnamed Leung.

In response, the FS said he wanted to keep the cheapest discounted fares at HK$2 because the scheme is widely recognised by society and encourages the elderly to go out more often.

"But by capping the number of trips at 240 [per month], we can limit the future expenditure growth. In the short term, we can even save money when the adjustments are implemented in 2027 or 2028," he said.