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The government announced today (Saturday) the financial results for the nine months ended December 31, 1998.
Expenditure for the current fiscal year to date amounts to $165,548.7 million and revenue to $127,494.4 million, resulting in a deficit for the nine months to December of $38,054.3 million. This is $2,491.8 million higher than that for the period to November.
As a result, the fiscal reserves stood at $427,793.8 million at December 31, a decrease of $29,749.2 million compared with the level at March 31, 1998, that is the end of the previous financial year.
A government spokesman said that revenue would pick up significantly in the final quarter of the year as over 80 per cent of Salaries Tax was collected in the three months from January to March. An up to date assessment of the likely deficit for the current fiscal year will be provided by the Financial Secretary in his Budget Speech on March 3, 1999.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended Apr. 1, 1998 to
Dec. 31, 1998 Dec. 31, 1998
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HK$ million HK$ million
Revenue 14,988.4 127,494.4
Expenditure (17,480.2) (165,548.7)
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Deficit (2,491.8) (38,054.3)
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Financing
Domestic
Banking Sector
(Note 1) 1,585.1 38,899.6
Non-Bank Sector 906.7 (845.3)
External -- --
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Total 2,491.8 38,054.3
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Government Debt as at
December 31, 1998 (Note 2) NIL
Debts Guaranteed by Government
as at December 31, 1998 (Note 3) HK$476.9 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended Apr. 1, 1998 to
Dec. 31, 1998 Dec. 31, 1998
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HK$ million HK$ million
Fiscal Reserves
at start of period 430,285.6 457,543.0
Add:
Consolidated Deficit (2,491.8) (38,054.3)
Increase in net worth
of the Land Fund
(Note 1) -- 8,305.1
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Fiscal Reserves
at end of period 427,793.8 427,793.8
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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/Saturday, January 30, 1999
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