Former transport secretary Frank Chan says it is appropriate for the government to find new sources of income under a fiscal deficit, but it should carefully assess the impact of any new policies.

Financial Secretary Paul Chan announced in his budget last month a proposed HK$200 levy on private cars every time they leave Hong Kong.

Speaking on the sidelines of the "Two Sessions" in Beijing, Chan - a Hong Kong deputy to the National People’s Congress (NPC) - said it was inevitable that new policies would have consequences.

But he believed the authorities had done analysis on the possible impact.

“I would expect the officers to come up with some kind of information and impact analysis so as to convince the public whether or not they should and how much it is to be raised," he said.

“Because at the time there's a financial deficit incurring in Hong Kong, then there must be a way that we need to balance it out.”

Another NPC deputy Nicholas Chan said the government should also look into ways to help those being affected by policy changes.

“We would have to probably take a more holistic approach about how we help people who might suffer from this, and if this is - overall - good for the economy, how do we lessen the hurt on those who are going to feel aggrieved by such a move,” he said.

The government also announced plans to adjust the city’s subsidised public transport fares for the elderly, including setting a cap on the number of subsidised trips per month.

Frank Chan said the subsidised transport fare was a welfare policy, instead of a transport policy, and that it is a responsible act of the government to review it based on the actual situation.