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The Government announced today (Tuesday) its financial results for the four months ended July 31, 1999.
Expenditure for the first four months of the current financial year amounted to $76,983.3 million and revenue to $47,295 million, resulting in a deficit of $29,688.3 million.
The fiscal reserves stood at $404,614.1 million at July 31, a decrease of $29,688.3 million compared with the balance of $434,302.4 million at March 31, 1999, the end of the previous financial year.
A government spokesman said that the Government's accounts were prepared on a cash basis and reflected the incidence of receipts and payments during the period.
"Because the bulk of collections from Profits Tax and Salaries Tax are normally received in the latter part of the year (roughly 85% of Profits Tax in last five months and 80% of Salaries Tax in the last three months) it is not unusual, even in good years, to see a substantial deficit in the early months of the financial year." he added.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended April 1, 1999 to
July 31, 1999 July 31, 1999
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HK$ million HK$ million
Revenue 10,532.9 47,295.0
Expenditure (17,479.0) (76,983.3)
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Deficit (6,946.1) (29,688.3)
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Financing
Domestic
Banking Sector (Note 1) 6,841.6 28,242.8
Non-Bank Sector 104.5 1,445.5
External -- --
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Total 6,946.1 29,688.3
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Government Debt as at July 31, 1999 (Note 2): NIL
Debts Guaranteed by Government as at
July 31, 1999 (Note 3) : HK$1,679.4 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended April 1, 1999 to
July 31, 1999 July 31, 1999
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HK$ million HK$ million
Fiscal Reserves at
start of period 411,560.2 434,302.4
Add :
Consolidated Deficit (6,946.1) (29,688.3)
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Fiscal Reserves at
end of period 404,614.1 404,614.1
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End/Tuesday, August 31, 1999
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