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The Government announced today (Thursday) the financial results for the eight months ended November 30, 1998.

Expenditure for the year to date amounts to $148,068.5 million and revenue to $112,506 million, resulting in a deficit for the eight months to November of $35,562.5 million. This is $14,601.4 million lower than that for the period to October.

A Government spokesman said the improvement was due to Profits Tax receipts during the month. The position should further improve with the bulk of the revenue from Profits Tax and Salaries Tax to be collected in the remaining months of the financial year.

As a result, the fiscal reserves stood at $430,285.6 million at November 30, 1998, a decrease of $27,257.4 million compared with the level at March 31, 1998, the end of the previous financial year.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

Year to date

Month ended April 1, 1998

Nov 30, 1998 to Nov 30, 1998

____________ ____________

HK $ million HK $ million

Revenue 30,819.1 112,506.0

Expenditure (16,217.7) (148,068.5)

__________ ___________

Surplus/(Deficit) 14,601.4 (35,562.5)

_________ ___________

Financing

Domestic

Banking Sector (Note 1) (14,903.1) 37,314.5

Non-Bank Sector 301.7 (1,752.0)

External -- --

_________ _________

Total (14,601.4) 35,562.5

_________ _________

Government Debt as at November 30, 1998 (Note 2) NIL

Debts Guaranteed by Government as at

November 30, 1998 (Note 3) HK$347.3 million

Notes :

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 April 1, 1998

Nov 30, 1998 to Nov 30, 1998

____________ ____________

HK $ million HK $ million

Fiscal Reserves at start of

period 415,684.2 457,543.0

Add :

Consolidated Surplus/(Deficit) 14,601.4 (35,562.5)

Increase in net worth of the

Land Fund (Note 1) -- 8,305.1

_________ __________

Fiscal Reserves at end 430,285.6 430,285.6

of period _________ __________

Note :

1. This amount represents the change in the net worth of the Land Fund's investments when they were managed as a separate portfolio by the Hong Kong Monetary Authority up to October 31. With effect from November 1, 1998, the assets of the Land Fund have been merged with those of the Exchange Fund into a single portfolio. This portfolio will earn the same rate of return as that of the Exchange Fund and investment earnings will take the form of an annual dividend to be paid in March each year.

End/Thursday, December 31, 1998

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