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The Government announced today (Saturday) its financial results for the ten months ended January 31, 1999.
Expenditure for the current fiscal year to date amounts to $193,200.7 million and revenue to $165,720.1 million, resulting in a deficit for the ten months to January of $27,480.6 million. This is $10,573.7 million lower than that for the period to December.
After taking account of the increase in the net worth of the Land Fund, the fiscal reserves stood at $438,367.5 million at January 31, 1999, a decrease of $19,175.5 million compared with the level at March 31, 1998, the end of the previous financial year.
A Government spokesman said that the improvement in the finances in January was mainly due to the normal high level of Salaries Tax receipts during the month. An up to date assessment of the likely deficit for the current fiscal year will be provided by the Financial Secretary in his Budget Speech on March 3, 1999.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended Apr 1, 1998 to
Jan 31, 1999 Jan 31, 1999
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HK$ million HK$ million
Revenue 38,225.7 165,720.1
Expenditure (27,652.0) (193,200.7)
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Surplus/(Deficit) 10,573.7 (27,480.6)
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Financing
Domestic
Banking Sector
(Note 1) (11,064.3) 27,835.3
Non-Bank Sector 490.6 (354.7)
External -- --
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Total (10,573.7) 27,480.6
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Government Debt as at
Jan 31, 1999 (Note 2) NIL
Debts Guaranteed by Government
as at January 31, 1999 (Note 3) HK$583.3 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended Apr 1, 1998 to
Jan 31, 1999 Jan 31, 1999
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HK$ million HK$ million
Fiscal Reserves at
start of period 427,793.8 457,543.0
Add :
Consolidated
Surplus/(Deficit) 10,573.7 (27,480.6)
Increase in net worth of
the Land Fund (Note 1) -- 8,305.1
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Fiscal Reserves at
end of period 438,367.5 438,367.5
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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, February 27, 1999
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