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The government announced today (Wednesday), its results for the eleven months ended February 28, 1999.
Expenditure for the current fiscal year to date amounts to $210,392.1 million and revenue to $178,407.1 million, resulting in a deficit for the eleven months to February of $31,985 million. This is $4,504.4 million higher than that for the period to January. After taking account of the increase in the net worth of the Land Fund, the deficit for the year 1998-99 to end February 1999 was $23,679.9 million. The Financial Secretary announced in his Budget Speech on March 3, 1999 that he expected the deficit for 1998-99 to amount to $32.3 billion.
The fiscal reserves stood at $433,863.1 million as at February 28, 1999, a decrease of $23,679.9 million compared with the level as at March 31, 1998, the end of the previous financial year.
A government spokesman said that the results for the first eleven months reflect the effect of the package of special relief measures announced on 22 June 1998 as well as a general slow-down in revenue collections as a result of the economic downturn.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended Apr 1, 1998 to
Feb 28, 1999 Feb 28, 1999
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HK$ million HK$ million
Revenue 12,687.0 178,407.1
Expenditure (17,191.4) (210,392.1)
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Deficit (4,504.4) (31,985.0)
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Financing
Domestic
Banking Sector (Note 1) 4,003.6 31,838.9
Non-Bank Sector 500.8 146.1
External - -
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Total 4,504.4 31,985.0
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Government Debt as at
February 28, 1999 (Note 2) NIL
Debts Guaranteed by Government
as at February 28, 1999 (Note 3) HK$645.7 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended Apr 1, 1998 to
Feb 28, 1999 Feb 28, 1999
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HK$ million HK$ million
Fiscal Reserves at
start of period 438,367.5 457,543.0
Add:
Consolidated Deficit (4,504.4) (31,985.0)
Increase in net worth
of the Land Fund (Note 1) - 8,305.1
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Fiscal Reserves at
end of period 433,863.1 433,863.1
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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/Wednesday, March 31, 1999
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