The early childhood education sector will receive its lowest level of subsidy in more than a decade as the number of preschools falls to a 13-year low, with the government cancelling two grants for kindergartens in the new school year.

According to the annual budget announced on Wednesday, the early childhood sector will receive only HK$4.5 billion (US$575 million) from the government in 2026–27, representing a 6.6 per cent drop from the current financial year.

“This is mainly due to decreased provision for some existing grants to kindergartens in 2026–27, largely as a result of the decrease in the number of students,” the budget said.

The government estimated there would be just 105,800 toddlers enrolled in kindergartens in the next school year, of whom 79,000 would attend subsidised institutions – both record lows.

The sector suffered the largest cut in resources among all areas overseen by the Education Bureau. By comparison, the primary and secondary education sectors will see reductions of less than 2 per cent and 1 per cent respectively, from the previous financial year.

The tertiary and vocational education sectors, meanwhile, will enjoy an increase of 4 per cent.