Where your tax goes

Infrastructure

Roads, rail and buildings

The Government plans to spend HK$124.9 billion on Infrastructure in 2026-27, 9.1% more than last year's revised estimate. p.12

Number 3 of the ten groups, with 14.8% of government spending (our calculation). p.12

Of HK$1,120 in tax, about HK$166 corresponds to this group. p.12 Change amount

Main spending at a glance

2026-27 budget · change from last year · your share SourcesCapital Works Reserve Fund, p.1Capital Works Reserve Fund, p.4Capital Works Reserve Fund, p.2Budget Appendix B, p.12

  1. Head 707 — New Towns and Urban Area Development HK$25.4bn ▲11.4% · HK$34
  2. Head 701 — Land Acquisition HK$20.0bn ▼0.7% · HK$27
  3. Head 706 Highways: transport – roads (sub-total) HK$4.0bn ▼36.8% · HK$5.3
  4. Head 706 Highways: transport – railways (sub-total) HK$697m ▼9.0% · HK$0.9

These are selected lines and can overlap. Some departments and funds also cover other groups, so do not add them together. Changes and personal shares are our calculation.

These splits are an illustration, not a bill: tax isn't earmarked. How we split it

Explore the detail

Capital Works Reserve Fund

Most government building projects are paid from the Capital Works Reserve Fund. The fund pays for projects in every group (new hospitals, for example, count under Health), so not all of it is counted here.

Capital Works Reserve Fund

2026-27 budgets; changes against last year's revised estimate (our calculation). SourcesCapital Works Reserve Fund, p.1Budget Appendix B, p.4Budget Appendix A, p.10

  1. Head 701 — Land Acquisition HK$20.0bn ▼0.7% · HK$27
  2. Head 702 — Port and Airport Development HK$150,000 ▲36.4% · <HK$0.1
  3. Head 703 — Buildings HK$45.5bn ▲16.4% · HK$60
  4. Head 704 — Drainage HK$11.7bn ▲16.6% · HK$15
  5. Head 705 — Civil Engineering HK$11.8bn ▼2.9% · HK$16
  6. Head 706 — Highways HK$7.3bn ▼24.8% · HK$9.7
  7. Head 707 — New Towns and Urban Area Development HK$25.4bn ▲11.4% · HK$34
  8. Head 708 (part) — Capital Subventions HK$12.3bn ▼6.0% · HK$16
  9. Head 708 (part) — Major Systems and Equipment HK$1.5bn ▲21.2% · HK$2.0
  10. Head 709 — Waterworks HK$8.5bn ▲48.9% · HK$11
  11. Head 710 — Computerisation HK$6.9bn ▲50.1% · HK$9.1
  12. Head 711 — Housing HK$5.5bn ▼54.9% · HK$7.3
  13. CWRF Heads 701–711 total (capital works, land acquisition, capital subventions, computerisation) HK$156.4bn ▲3.7% · HK$208
  14. Government bonds — interest and other expenses HK$16.6bn ▲57.6% · HK$22
  15. Fund spending counted as government expenditure (Heads 701–711 plus bond interest) HK$173.0bn ▲7.3% · HK$230
See last year's figures

Compare with last year SourcesCapital Works Reserve Fund, p.1Budget Appendix B, p.4Budget Appendix A, p.10

Item2026-27EstimateChange2025-26Revised estimate
Head 701 — Land AcquisitionHK$20.0bn19,973.8−HK$143m · −0.7%20,116.6
Head 702 — Port and Airport DevelopmentHK$150,0000.15+HK$40,000 · +36.4%0.11
Head 703 — BuildingsHK$45.5bn45,515.0+HK$6.4bn · +16.4%39,106.1
Head 704 — DrainageHK$11.7bn11,655.6+HK$1.7bn · +16.6%10,000.0
Head 705 — Civil EngineeringHK$11.8bn11,756.8−HK$352m · −2.9%12,108.7
Head 706 — HighwaysHK$7.3bn7,333.0−HK$2.4bn · −24.8%9,750.8
Head 707 — New Towns and Urban Area DevelopmentHK$25.4bn25,371.3+HK$2.6bn · +11.4%22,773.0
Head 708 (part) — Capital SubventionsHK$12.3bn12,306.8−HK$782m · −6.0%13,089.0
Head 708 (part) — Major Systems and EquipmentHK$1.5bn1,512.1+HK$265m · +21.2%1,247.6
Head 709 — WaterworksHK$8.5bn8,544.8+HK$2.8bn · +48.9%5,740.0
Head 710 — ComputerisationHK$6.9bn6,868.9+HK$2.3bn · +50.1%4,577.4
Head 711 — HousingHK$5.5bn5,517.4−HK$6.7bn · −54.9%12,233.2
CWRF Heads 701–711 total (capital works, land acquisition, capital subventions, computerisation)HK$156.4bn156,355.7+HK$5.6bn · +3.7%150,742.5
Government bonds — interest and other expensesHK$16.6bn16,641.0+HK$6.1bn · +57.6%10,556.0
Fund spending counted as government expenditure (Heads 701–711 plus bond interest)HK$173.0bn172,997.0+HK$11.7bn · +7.3%161,298.0
Land and the Northern Metropolis

There is no official total for the Northern Metropolis. These are the land and new development area items in the Estimates.

Land and the Northern Metropolis

2026-27 budgets; changes against last year's revised estimate (our calculation). SourcesCapital Works Reserve Fund, p.1Capital Works Reserve Fund, p.1Capital Works Reserve Fund, p.7

  1. Head 701 — Land Acquisition HK$20.0bn ▼0.7% · HK$27
  2. of which: compensation and ex-gratia allowances for public works (block allocation) HK$19.9bn ▼0.6% · HK$26
  3. Head 707 — New Towns and Urban Area Development HK$25.4bn ▲11.4% · HK$34
  4. of which: civil engineering – land development (sub-total, including Northern Metropolis new development areas) HK$20.8bn ▲21.9% · HK$28
See last year's figures

Compare with last year SourcesCapital Works Reserve Fund, p.1Capital Works Reserve Fund, p.1Capital Works Reserve Fund, p.7

Item2026-27EstimateChange2025-26Revised estimate
Head 701 — Land AcquisitionHK$20.0bn19,973.8−HK$143m · −0.7%20,116.6
of which: compensation and ex-gratia allowances for public works (block allocation)HK$19.9bn19,908.1−HK$123m · −0.6%20,031.5
Head 707 — New Towns and Urban Area DevelopmentHK$25.4bn25,371.3+HK$2.6bn · +11.4%22,773.0
of which: civil engineering – land development (sub-total, including Northern Metropolis new development areas)HK$20.8bn20,751.1+HK$3.7bn · +21.9%17,023.9

Northern Metropolis new development areas: main works

Cash flow is this year's payment. Total project cost is paid over several years; do not add the two.

Project2026-27 cash flowTotal project cost
Remaining phase of site formation and engineering infrastructure works at Kwu Tung North New Development Area and Fanling North New Development Area— construction7828CL p.4HK$4.0bn3,972.1HK$30.2bn30,167.9
Hung Shui Kiu/Ha Tsuen New Development Area stage 2 works— site formation and engineering infrastructure7829CL p.4HK$2.3bn2,344.8HK$20.3bn20,272.0
Development of the Loop—Main Works Package 1—site formation and infrastructure works7856CL p.5HK$1.4bn1,385.6HK$13.2bn13,217.3
Phase 1 Stage 1 works of San Tin Technopole—site formation and engineering infrastructure7899CL p.6HK$1.3bn1,316.4HK$27.2bn27,175.1
Advance site formation and engineering infrastructure works at Kwu Tung North new development area and Fanling North new development area7747CL p.2HK$843m843.0HK$17.3bn17,320.1
Hung Shui Kiu/Ha Tsuen New Development Area advance works phase 3—site formation and engineering infrastructure7787CL p.3HK$671m671.2HK$5.7bn5,674.8
Roads, railways, water and other large projects

Roads, railways, water and other large projects

2026-27 budgets; changes against last year's revised estimate (our calculation). p.4 p.2

  1. Head 706 Highways: transport – roads (sub-total) HK$4.0bn ▼36.8% · HK$5.3
  2. Head 706 Highways: transport – railways (sub-total) HK$697m ▼9.0% · HK$0.9
See last year's figures

Compare with last year p.4 p.2

Item2026-27EstimateChange2025-26Revised estimate
Head 706 Highways: transport – roads (sub-total)HK$4.0bn4,015.6−HK$2.3bn · −36.8%6,352.0
Head 706 Highways: transport – railways (sub-total)HK$697m696.5−HK$68.7m · −9.0%765.3

Roads, railways, water and other large projects: projects

Cash flow is this year's payment. Total project cost is paid over several years; do not add the two.

Project2026-27 cash flowTotal project cost
Tung Chung New Town Extension— site formation and infrastructure works7859CL p.5HK$2.5bn2,545.0HK$19.3bn19,332.9
Central Kowloon Route— main works6461TH p.3HK$2.1bn2,059.6HK$42.4bn42,363.9
Trunk Road T2 and Cha Kwo Ling Tunnel—construction7785TH p.7HK$1.7bn1,650.0HK$16.0bn16,017.0
Ngau Tam Mei water treatment works extension—main works— package one9382WF p.2HK$1.5bn1,511.9HK$9.6bn9,608.5
Trunk Road T4 in Sha Tin7705TH p.7HK$1.4bn1,437.5HK$6.8bn6,810.0
Tung Chung New Town Extension— Site Formation and Infrastructure Works (Second Phase)7898CL p.6HK$1.4bn1,353.4HK$4.8bn4,758.1
Integrated Basement for West Kowloon Cultural District— remaining works7763CL p.2HK$1.3bn1,335.2HK$17.5bn17,472.3
Relocation of Sha Tin Sewage Treatment Works to caverns— remaining works4399DS p.2HK$1.3bn1,307.8HK$12.9bn12,930.4
Yuen Long South development— stage 2A works—site formation and engineering infrastructure and stages 2B and 3 works—detailed design and site investigation7872CL p.6HK$1.1bn1,148.0HK$5.0bn4,994.4
In-situ reprovisioning of Sha Tin water treatment works (South Works)—main works9181WF p.1HK$1.1bn1,103.3HK$7.0bn7,019.9
Shatin to Central Link—construction of railway works—remaining works6061TR p.2HK$433m432.5HK$74.1bn74,130.1

Major capital projects in this group planned to start in 2026-27 have total project estimates of HK$41.6 billion p.14. That is the whole cost of the projects, paid over several years, not 2026-27 spending.

Three years: actual, revised estimate, estimate

Spending over three years SourcesBudget Appendix B, p.12Budget Appendix B, p.9Budget Appendix B, p.11

Expanded amounts are in HK$ million; percentages come from Budget Appendix B.

Measure2026-27EstimateChange2025-26Revised estimate2024-25Actual
Government expenditureHK$124.9bn124,923+HK$10.4bn · +9.1%114,48299,546
Recurrent spendingHK$34.7bn34,727+HK$1.6bn · +4.8%33,12933,406
Public expenditureHK$125.3bn125,267+HK$10.5bn · +9.1%114,80399,830

Recurrent spending covers yearly costs such as pay, grants and allowances. Public expenditure also includes the Housing Authority and trading funds.

Policy areas and departments

Department figures are whole budgets and can include other policy areas. Do not add them together as this group's spending. Index of Policy Areas

Land and Waterborne Transport

Departments that contribute

SourcesSummary of expenditure, p.3Summary of expenditure, p.2Summary of expenditure, p.1

  1. Transport Department Part of this department's spending: it also works in 2 other policy areas HK$13.1bn
  2. Highways Department Part of this department's spending: it also works in 3 other policy areas HK$4.7bn
  3. Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas HK$4.2bn
  4. Lands Department Part of this department's spending: it also works in 2 other policy areas HK$3.3bn
  5. Marine Department Part of this department's spending: it also works in 6 other policy areas HK$1.8bn
  6. Electrical and Mechanical Services Department Part of this department's spending: it also works in 6 other policy areas HK$1.4bn
  7. Planning Department Part of this department's spending: it also works in 1 other policy area HK$884m
  8. Government Secretariat: Transport and Logistics Bureau Part of this department's spending: it also works in 2 other policy areas HK$442m
Buildings, Lands, Planning, Heritage Conservation, Greening and Landscape

Departments that contribute

SourcesSummary of expenditure, p.2Summary of expenditure, p.1Summary of expenditure, p.3

  1. Highways Department Part of this department's spending: it also works in 3 other policy areas HK$4.7bn
  2. Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas HK$4.2bn
  3. Lands Department Part of this department's spending: it also works in 2 other policy areas HK$3.3bn
  4. Government Property Agency Part of this department's spending: it also works in 1 other policy area HK$3.2bn
  5. Architectural Services Department Part of this department's spending: it also works in 1 other policy area HK$2.8bn
  6. Agriculture, Fisheries and Conservation Department Part of this department's spending: it also works in 4 other policy areas HK$2.2bn
  7. Buildings Department HK$2.1bn
  8. Marine Department Part of this department's spending: it also works in 6 other policy areas HK$1.8bn
  9. Government Secretariat: Development Bureau (Works Branch) Part of this department's spending: it also works in 2 other policy areas HK$1.5bn
  10. Government Secretariat: Development Bureau (Planning and Lands Branch) Part of this department's spending: it also works in 1 other policy area HK$1.5bn
  11. Electrical and Mechanical Services Department Part of this department's spending: it also works in 6 other policy areas HK$1.4bn
  12. Planning Department Part of this department's spending: it also works in 1 other policy area HK$884m
Water Supply, Drainage and Slope Safety

Departments that contribute

SourcesSummary of expenditure, p.3Summary of expenditure, p.2Summary of expenditure, p.1

  1. Water Supplies Department HK$10.4bn
  2. Highways Department Part of this department's spending: it also works in 3 other policy areas HK$4.7bn
  3. Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas HK$4.2bn
  4. Drainage Services Department Part of this department's spending: it also works in 1 other policy area HK$4.1bn
  5. Government Secretariat: Development Bureau (Works Branch) Part of this department's spending: it also works in 2 other policy areas HK$1.5bn
Measures in the Budget Speech

Measures are grouped by topic here. Earmarks, injections and amounts spread over several years are different from this year's spending.

  1. Capital works spending in 2026-27

    HK$128 billion p.882026-27 spending, rounded; a narrower measure than all Capital Works Reserve Fund spending

  2. Average capital works spending a year, 2026-27 to 2030-31

    HK$120 billion p.96Yearly average (forecast)

  3. Extra money set aside for works projects (2025 Policy Address)

    HK$30 billion p.88Earmark for the next two to three years

  4. Transfer from the Exchange Fund to the Capital Works Reserve Fund

    HK$75 billion p.88Financing, not spending; one transfer in each of 2026-27 and 2027-28

  5. New building repair subsidy scheme replacing Operation Building Bright 2.0

    HK$3 billion p.78Earmark

  6. Extending the Lift Modernisation Subsidy Scheme

    HK$1 billion p.78Allocation for subsidies to owners

  7. Urban Renewal Authority: enhanced “Smart Tender” and subsidies

    HK$300 million p.78Allocation to the Urban Renewal Authority

  8. Injection into the Construction Innovation and Technology Fund

    HK$1 billion p.76Paid into a fund, which spends it over time

  9. More money for the Built Heritage Conservation Fund

    HK$1 billion p.64Additional funding

  10. Studies by the Building Technology Research Institute

    HK$100 million p.77Earmark

  11. More government-funded training places for construction professionals

    HK$65 million p.59Allocation this year

How are shares and changes calculated?

Personal share = your tax amount × the spending line ÷ total government expenditure. Lines can overlap and should not be added together. p.12

Nominal changes for groups come from Budget Appendix B. Changes for individual lines compare this year's estimate with last year's revised estimate and are our calculation. p.12