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Funding for UGC-funded universities is composed of recurrent grants and capital grants. The former are to support universities' academic work and related administrative activities. The latter are used to finance major works projects and minor campus improvement works.

  • Recurrent Grants

    The bulk of the recurrent grants are disbursed to universities normally on a triennial basis to tie in with the academic planning cycle, and in the form of a block grant to provide universities with maximum flexibility in internal deployment. Once allocations are approved, universities have a high degree of freedom in deciding on how the resources available are put to best use.

    Determination of the grants to universities is largely based on an established formula. The funding formula is the key parameter used to assess universities' needs. But in finalising its funding recommendations, the UGC also takes into account the special needs of individual universities and other factors not captured by the formula and will introduce extraformulaic adjustments where required.

    Following the Government established mechanism, funding recommendations will be submitted to the Government and approved by the Legislative Council.

  • Capital Grants

    Capital projects carried out by universities are supported by capital grants which are sought from the Administration on an annual basis by way of two avenues, namely the Capital Works Programme, and the Alterations, Additions and Improvements (AA&I) block allocation.

    The two avenues are characterized by a double-approval process through which all projects have first to be vetted by the UGC before the selected ones are put forward to the legislature for the seeking of funds. As regards the Capital Works Programme, there is an additional process for UGC selected projects to be subjected to a competitive selection process by the Administration.