Where your tax goes

Infrastructure

Roads, rail and buildings

In 2026-27 the Government plans to spend HK$124.9 billion on Infrastructure p.12. That is 14.8% of all government spending (our calculation) p.12, and 9.1% more than the 2025-26 revised estimate p.12.

Of this, HK$34.7 billion p.9 is recurrent spending (27.8%, our calculation): salaries, grants, allowances and running costs paid year after year. The rest goes on building works, equipment and one-off items.

A household on the median income pays about HK$1,120 in salaries tax for 2026/27; about HK$166 of that would go to Infrastructure (our calculation) p.12. Try your own amount

This is an illustration, not a bill. Tax is not earmarked: your tax goes into one pot with profits tax, stamp duties, land sales, investment income and borrowing. We split the amount you enter in the same proportions as the Government's planned spending for 2026-27.

How we worked these out
Share of government spending
Infrastructure total government expenditure ÷ all government expenditure p.12
Recurrent share
recurrent government expenditure ÷ total government expenditure p.9 p.12
Of HK$1,120
HK$1,120 × the share of government spending, with rounding adjusted so the ten groups add up exactly (as on the receipt). p.12 A household on the median income earns HK$30,000 a month p.17. If one married person earns all of it, salaries tax under the 2026/27 rules is about HK$1,120 (our calculation, after MPF and the married person's allowance p.107, at progressive rates p.1).
Change
The official percentage printed in the Budget (2026-27 estimate against 2025-26 revised estimate, nominal). p.12

Infrastructure is number 3 of the 10 groups by size

2026-27 estimate, total government expenditure by policy area group. Percentages are shares of all government spending (our calculation). p.12

  1. Health HK$153.1 billion · 18.2% p.12
  2. Social Welfare HK$148.1 billion · 17.6% p.12
  3. Infrastructure HK$124.9 billion · 14.8% p.12
  4. Education HK$112.0 billion · 13.3% p.12
  5. Support HK$90.1 billion · 10.7% p.12
  6. Security HK$71.5 billion · 8.5% p.12
  7. Economic HK$57.0 billion · 6.8% p.12
  8. Environment and Food HK$51.3 billion · 6.1% p.12
  9. Community and External Affairs HK$28.0 billion · 3.3% p.12
  10. Housing HK$7.4 billion · 0.9% p.12

Spending over three years

Infrastructure spending (HK$ million)
Measure 2024-25Actual2025-26Revised estimate2026-27Estimate Change Source
Total government expenditure 99,546114,482124,923 +9.1% p.12
Recurrent government expenditure 33,40633,12934,727 +4.8% p.9
Total public expenditure 99,830114,803125,267 +9.1% p.11

“Change” is the official percentage printed in the Budget: 2026-27 estimate against the 2025-26 revised estimate (nominal).

Government expenditure covers the General Revenue Account and several government funds, such as the Capital Works Reserve Fund. Recurrent spending is what is paid every year. Public expenditure also adds the trading funds and the Housing Authority.

Public expenditure here is slightly higher than government expenditure because it includes spending by the Government's trading funds. All trading funds together plan to spend HK$4.3 billion in 2026-27 p.4.

Policy areas and the departments behind them

The Infrastructure group is made up of 3 policy areas. Each is served by one or more departments, as listed in the Index of Policy Areas in the Estimates.

The Government publishes totals only for the ten groups, not for each policy area. The figure beside each department is its whole budget, not just the part for this area, so don't add them up: many departments work across several areas, and spending from the Capital Works Reserve Fund and other funds (most building projects) is not in department budgets.

Land and Waterborne Transport

Department (head) 2026-27EstimateHK$ million Source
Transport Department Part of this department's spending: it also works in 2 other policy areas 13,058.8 p.3
Highways Department Part of this department's spending: it also works in 3 other policy areas 4,705.8 p.2
Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas 4,190.1 p.1
Lands Department Part of this department's spending: it also works in 2 other policy areas 3,280.9 p.2
Marine Department Part of this department's spending: it also works in 6 other policy areas 1,840.0 p.3
Electrical and Mechanical Services Department Part of this department's spending: it also works in 6 other policy areas 1,420.0 p.1
Planning Department Part of this department's spending: it also works in 1 other policy area 883.8 p.3
Government Secretariat: Transport and Logistics Bureau Part of this department's spending: it also works in 2 other policy areas 441.7 p.2

Buildings, Lands, Planning, Heritage Conservation, Greening and Landscape

Department (head) 2026-27EstimateHK$ million Source
Highways Department Part of this department's spending: it also works in 3 other policy areas 4,705.8 p.2
Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas 4,190.1 p.1
Lands Department Part of this department's spending: it also works in 2 other policy areas 3,280.9 p.2
Government Property Agency Part of this department's spending: it also works in 1 other policy area 3,234.6 p.1
Architectural Services Department Part of this department's spending: it also works in 1 other policy area 2,811.6 p.1
Agriculture, Fisheries and Conservation Department Part of this department's spending: it also works in 4 other policy areas 2,240.7 p.1
Buildings Department 2,091.1 p.1
Marine Department Part of this department's spending: it also works in 6 other policy areas 1,840.0 p.3
Government Secretariat: Development Bureau (Works Branch) Part of this department's spending: it also works in 2 other policy areas 1,546.0 p.1
Government Secretariat: Development Bureau (Planning and Lands Branch) Part of this department's spending: it also works in 1 other policy area 1,504.9 p.1
Electrical and Mechanical Services Department Part of this department's spending: it also works in 6 other policy areas 1,420.0 p.1
Planning Department Part of this department's spending: it also works in 1 other policy area 883.8 p.3

Water Supply, Drainage and Slope Safety

Department (head) 2026-27EstimateHK$ million Source
Water Supplies Department 10,443.5 p.3
Highways Department Part of this department's spending: it also works in 3 other policy areas 4,705.8 p.2
Civil Engineering and Development Department Part of this department's spending: it also works in 6 other policy areas 4,190.1 p.1
Drainage Services Department Part of this department's spending: it also works in 1 other policy area 4,065.3 p.1
Government Secretariat: Development Bureau (Works Branch) Part of this department's spending: it also works in 2 other policy areas 1,546.0 p.1

Main spending lines

Each line is printed in the Estimates. “Of a typical household's HK$1,120” = HK$1,120 × the line ÷ total government expenditure of HK$843.4 billion (our calculation) p.12.

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.

HK$ million
Item 2025-26Revised estimate 2026-27Estimate Of a typical household's HK$1,120 Source
Head 701 — Land Acquisition 20,116.6 19,973.8 HK$27 p.1
Head 702 — Port and Airport Development 0.11 0.15 under HK$1 p.1
Head 703 — Buildings 39,106.1 45,515.0 HK$60 p.1
Head 704 — Drainage 10,000.0 11,655.6 HK$15 p.1
Head 705 — Civil Engineering 12,108.7 11,756.8 HK$16 p.1
Head 706 — Highways 9,750.8 7,333.0 HK$10 p.1
Head 707 — New Towns and Urban Area Development 22,773.0 25,371.3 HK$34 p.1
Head 708 (part) — Capital Subventions 13,089.0 12,306.8 HK$16 p.1
Head 708 (part) — Major Systems and Equipment 1,247.6 1,512.1 HK$2 p.1
Head 709 — Waterworks 5,740.0 8,544.8 HK$11 p.1
Head 710 — Computerisation 4,577.4 6,868.9 HK$9 p.1
Head 711 — Housing 12,233.2 5,517.4 HK$7 p.1
CWRF Heads 701–711 total (capital works, land acquisition, capital subventions, computerisation) 150,742.5 156,355.7 HK$208 p.1
Government bonds — interest and other expenses 10,556.0 16,641.0 HK$22 p.1
Fund spending counted as government expenditure (Heads 701–711 plus bond interest) 161,298.0 172,997.0 HK$230 p.10 p.4

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.

HK$ million
Item 2025-26Revised estimate 2026-27Estimate Of a typical household's HK$1,120 Source
Head 701 — Land Acquisition 20,116.6 19,973.8 HK$27 p.1
of which: compensation and ex-gratia allowances for public works (block allocation) 20,031.5 19,908.1 HK$26 p.1
Head 707 — New Towns and Urban Area Development 22,773.0 25,371.3 HK$34 p.1
of which: civil engineering – land development (sub-total, including Northern Metropolis new development areas) 17,023.9 20,751.1 HK$28 p.7
Northern Metropolis new development areas: main works (HK$ million)
Project 2026-27cash flow (estimate) Total project costapproved project estimate Source
Remaining phase of site formation and engineering infrastructure works at Kwu Tung North New Development Area and Fanling North New Development Area— construction Head 707 · 7828CL 3,972.1 30,167.9 p.4
Hung Shui Kiu/Ha Tsuen New Development Area stage 2 works— site formation and engineering infrastructure Head 707 · 7829CL 2,344.8 20,272.0 p.4
Development of the Loop—Main Works Package 1—site formation and infrastructure works Head 707 · 7856CL 1,385.6 13,217.3 p.5
Phase 1 Stage 1 works of San Tin Technopole—site formation and engineering infrastructure Head 707 · 7899CL 1,316.4 27,175.1 p.6
Advance site formation and engineering infrastructure works at Kwu Tung North new development area and Fanling North new development area Head 707 · 7747CL 843.0 17,320.1 p.2
Hung Shui Kiu/Ha Tsuen New Development Area advance works phase 3—site formation and engineering infrastructure Head 707 · 7787CL 671.2 5,674.8 p.3

Cash flow is the amount planned to be paid in 2026-27. Total project cost is the approved estimate for the whole project, paid over several years. The two are different measures: don't compare or add them.

Roads, railways, water and other large projects

HK$ million
Item 2025-26Revised estimate 2026-27Estimate Of a typical household's HK$1,120 Source
Head 706 Highways: transport – roads (sub-total) 6,352.0 4,015.6 HK$5 p.4
Head 706 Highways: transport – railways (sub-total) 765.3 696.5 HK$1 p.2
Roads, railways, water and other large projects: projects (HK$ million)
Project 2026-27cash flow (estimate) Total project costapproved project estimate Source
Tung Chung New Town Extension— site formation and infrastructure works Head 707 · 7859CL 2,545.0 19,332.9 p.5
Central Kowloon Route— main works Head 706 · 6461TH 2,059.6 42,363.9 p.3
Trunk Road T2 and Cha Kwo Ling Tunnel—construction Head 707 · 7785TH 1,650.0 16,017.0 p.7
Ngau Tam Mei water treatment works extension—main works— package one Head 709 · 9382WF 1,511.9 9,608.5 p.2
Trunk Road T4 in Sha Tin Head 707 · 7705TH 1,437.5 6,810.0 p.7
Tung Chung New Town Extension— Site Formation and Infrastructure Works (Second Phase) Head 707 · 7898CL 1,353.4 4,758.1 p.6
Integrated Basement for West Kowloon Cultural District— remaining works Head 707 · 7763CL 1,335.2 17,472.3 p.2
Relocation of Sha Tin Sewage Treatment Works to caverns— remaining works Head 704 · 4399DS 1,307.8 12,930.4 p.2
Yuen Long South development— stage 2A works—site formation and engineering infrastructure and stages 2B and 3 works—detailed design and site investigation Head 707 · 7872CL 1,148.0 4,994.4 p.6
In-situ reprovisioning of Sha Tin water treatment works (South Works)—main works Head 709 · 9181WF 1,103.3 7,019.9 p.1
Shatin to Central Link—construction of railway works—remaining works Head 706 · 6061TR 432.5 74,130.1 p.2

Cash flow is the amount planned to be paid in 2026-27. Total project cost is the approved estimate for the whole project, paid over several years. The two are different measures: don't compare or add them.

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.

Measures in the Budget Speech

The Financial Secretary announced these measures in the Budget Speech in February 2026. The speech does not sort them into policy area groups; we matched them by topic. Many amounts are earmarks, injections into funds or spread over several years, so they are not the same as 2026-27 spending.

Measure Amount What the amount is Source
Capital works spending in 2026-27 Speech paragraph 266 HK$128 billion 2026-27 spending, rounded; a narrower measure than all Capital Works Reserve Fund spending p.88
Average capital works spending a year, 2026-27 to 2030-31 Speech paragraph 282 HK$120 billion Yearly average (forecast) p.96
Extra money set aside for works projects (2025 Policy Address) Speech paragraph 266 HK$30 billion Earmark for the next two to three years p.88
Transfer from the Exchange Fund to the Capital Works Reserve Fund Speech paragraph 265 HK$75 billion Financing, not spending; one transfer in each of 2026-27 and 2027-28 p.88
New building repair subsidy scheme replacing Operation Building Bright 2.0 Speech paragraph 235 HK$3 billion Earmark p.78
Extending the Lift Modernisation Subsidy Scheme Speech paragraph 235 HK$1 billion Allocation for subsidies to owners p.78
Urban Renewal Authority: enhanced “Smart Tender” and subsidies Speech paragraph 234 HK$300 million Allocation to the Urban Renewal Authority p.78
Injection into the Construction Innovation and Technology Fund Speech paragraph 227 HK$1 billion Paid into a fund, which spends it over time p.76
More money for the Built Heritage Conservation Fund Speech paragraph 188 HK$1 billion Additional funding p.64
Studies by the Building Technology Research Institute Speech paragraph 230 HK$100 million Earmark p.77
More government-funded training places for construction professionals Speech paragraph 172 HK$65 million Allocation this year p.59