For discussion
on 21 February 1997



Subhead 305 Code of Aid for secondary schools

Members are invited to approve supplementary provision of $21,340,000 under Head 40 Education Department Subhead 305 Code of Aid for secondary schools to meet increased expenditure in 1996-97 for aided secondary schools.


The approved provision under Subhead 305 Code of Aid for secondary schools is inadequate to meet the requirements for 1996-97.


2. The Director of Education (D of E) proposes supplementary provision of $21,340,000 to meet increased expenditure in 1996-97 for aided secondary schools.


3. Provision under Subhead 305 serves the following purposes -

  1. to enable schools to pay salaries to all teaching and non-teaching staff employed in accordance with the terms of the Code of Aid;

  2. to enable schools to pay the administrative costs in relation to the running of the schools;

  3. to enable schools to cover the costs of rent, Crown rent and rates in respect of premises used for school purposes; and

  4. to cover Government contributions towards the two statutory provident funds for teaching staff and approved non-statutory provident fund schemes for other staff.

4. Based on the latest expenditure projection, D of E estimates that there will be shortfall of $21,340,000 under Subhead 305, calculated as follows -

$ million

(a) Expenditure up to 31 January 1997


(b) Estimated expenditure for the remainder of 1996-97


(c) Total estimated expenditure for 1996-97 [(a)+(b)]


(d) Approved provision for 1996-97


(e) Supplementary provision for 1996-97 to meet additional expenditure required to cover salaries and allowances in accordance with approved rates and scales


(f) Shortfall



5. The anticipated shortfall is attributable to the following factors -

  1. additional sum of $6,850,000 for the revision of the rate of the School and Class Grant (SCG) with effect from 1 September 1996 to maintain their real value. We revise the rate of SCG annually having regard to the movement of the price indices of the relevant expenditure items in the Consumer Price Index (A), its actual utilisation and expenditure pattern;

  2. additional amount of $11,650,000 to cover the increase of 11% in payment of Crown rent and rates with effect from 1 April 1996; and

  3. additional expenditure of $2,840,000 to cover non-salary related expenses for the operation of 51 additional classes to meet the demand on school places. The actual demand has increased from 9 491 classes to 9 542 classes.


6. If Members approve the proposal, we shall offset supplementary provision of $21,340,000 under Subhead 305 by deleting an equivalent amount under Head 106 Miscellaneous Services Subhead 251 Additional commitments.

Education and Manpower Branch
February 1997

Last Updated on 5 August 1999