***************************************************
The government announced today (Wednesday) its financial results for the two months ended May 31, 1999.
Expenditure for the first two months of the current financial year amounted to $42,113.7 million and revenue to $24,186 million, resulting in a deficit of $17,927.7 million for the two months to May 31, 1999.
The fiscal reserves stood at $416,374.7 million at May 31, 1999, a decrease of $17,927.7 million compared with the balance of $434,302.4 million at March 31, 1999, the end of the previous financial year.
A government spokesman said that the Government's accounts were prepared on a cash basis and reflected the incidence of receipts and payments during the period.
"The results are in line with our expectations, based on the budgeted deficit for the year of $36.5 billion as announced by the Financial Secretary in his Budget Speech on March 3, 1999," he added.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended April 1, 1999
May 31, 1999 to May 31, 1999
------------ ---------------
HK$ million HK$ million
Revenue 10,878.1 24,186.0
Expenditure (17,388.4) (42,113.7)
---------- ----------
Deficit (6,510.3) (17,927.7)
---------- ----------
Financing
Domestic
Banking Sector(Note 1) 5,494.0 17,267.5
Non-Bank Sector 1,016.3 660.2
External - -
--------- ----------
Total 6,510.3 17,927.7
--------- ----------
Government Debt as at May 31, 1999
(Note 2): NIL
Debts Guaranteed by Government as at
May 31, 1999 (Note 3): HK$968.8 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended April 1, 1999
May 31, 1999 to May 31, 1999
------------ ---------------
HK$ million HK$ million
Fiscal Reserves at
start of period 422,885.0 434,302.4
Add:
Consolidated Deficit (6,510.3) (17,927.7)
----------- -----------
Fiscal Reserves at
end of period 416,374.7 416,374.7
----------- -----------
End/Wednesday, June 30, 1999
NNNN