Hong Kong’s top decision-making body has approved a flat 2 per cent pay rise for civil servants this year, citing the need for a prudent approach to managing public finances amid a volatile geopolitical environment.The raise will bring about an extra annual government spending of HK$6 billion (US$765.7 million), according to Secretary for the Civil Service Ingrid Yeung Ho Poi-yan.She said on Tuesday that the adjustment recognised civil servants’ performance, adding that the decision followed the established mechanism, which takes into account the state of the economy and the cost of living.“The Executive Council does not only consider the figures,” Yeung said. “It also considers the fiscal commitments needed for Hong Kong’s future development and the impact of the geopolitical situation on the city as an open economy.”When asked whether public sentiment had been considered, Yeung said it was factored into all decisions by the city’s leader and top decision-making body, including this pay rise.The pay rise was endorsed by the chief executive in council, with the new salary level set to take effect from April.