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The government announced today (Monday) its financial results for the seven months ended October 31, 1998.
Expenditure for the year to date amounts to $131,850.8 million and revenue to $81,686.9 million, resulting in a deficit for the seven months of the financial year of $50,163.9 million. In addition, the net worth of the Land Fund has increased by $8,305.1 million since April 1, 1998.
As a result, the fiscal reserves stood at $415,684.2 million at October 31, 1998, a decrease of $41,858.8 million compared with the level at March 31, 1998, the end of the previous financial year.
A Government spokesman said: "Because the Government's accounts are prepared on a cash basis, and since the bulk of collections from Profits Tax and Salaries Tax are normally received in the latter part of the financial year (roughly 90% of Profit Tax in the last five months and 80% of Salaries Tax in the last three months), it is not unusual, even in good years, to see a substantial deficit in the first seven months of the financial year."
More detailed figures are shown in Tables 1 and 2 :
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended Apr 1, 1998 to
Oct 31, 1998 Oct 31, 1998
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HK $ million HK $ million
Revenue 9,085.6 81,686.9
Expenditure (16,648.8) (131,850.8)
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Deficit (7,563.2) (50,163.9)
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Financing
Domestic
Banking Sector (Note 1) 9,824.3 52,217.6
Non-Bank Sector (2,261.1) (2,053.7)
External -- --
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Total 7,563.2 50,163.9
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Government Debt as at October 31, 1998 (Note 2) NIL
Debts Guaranteed by Government as at
October 31, 1998 (Note 3) HK$185.5 million
Note
1 : Includes transactions with the Exchange Fund and resident banks.
2 : The Government is debt free.
3 : Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended Apr 1, 1998 to
Oct 31, 1998 Oct 31, 1998
HK $ million HK $ million
Fiscal Reserves at
start of period 417,915.7 457,543.0
Add:Consolidated Deficit (7,563.2) (50,163.9)
Change in net worth
of the Land Fund 5,331.7 8,305.1
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Fiscal Reserves at
end of period 415,684.2 415,684.2
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End/Monday, November 30, 1998
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