Deficit leap brings new civil service pay warning Deficit leap spurs warning on salaries.

(From South China Morning Post)

Byline: May Sin-mi Hon

The civil service chief has warned of possible pay cuts after the latest figures revealed the budget deficit reached $72.4 billion for the first seven months of the financial year.

Secretary for the Civil Service Joseph Wong Wing-ping said yesterday the government would introduce measures to cut the deficit, including a possible further adjustment of civil service pay. "We need to consider if the pay of civil servants should be adjusted in cutting government expenditure," he said.

Mr Wong previously has said civil service pay levels and the budget deficit were separate matters.

It is believed other measures being considered include introducing a second round of voluntary retirements for civil servants.

Civil service pay was cut by between 1.58 per cent and 4.42 per cent this year, a move that will save about $3 billion a year. A bill was passed to impose a cut although it aroused strong opposition from civil service unions.