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The Government announced today (Thursday) its financial results for the five months ended August 31, 1999.

Expenditure for the first five months of the current financial year amounted to $93,672.2 million and revenue to $57,643.3 million, resulting in a deficit of $36,028.9 million.

The fiscal reserves stood at $398,273.5 million at August 31, a decrease of $36,028.9 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 the 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

                             August 31, 1999     August 31, 1999

                             ---------------     ---------------

                             HK $ million         HK $ million



Revenue                       10,348.3              57,643.3

Expenditure                  (16,688.9)            (93,672.2)

                             -----------           ----------

Deficit                       (6,340.6)            (36,028.9)

                             -----------           ----------



Financing

   Domestic

     Banking Sector(Note 1)    5,688.0              33,930.8

     Non-Bank Sector             652.6               2,098.1

   External                       -                     -

                             ----------            ----------

Total                          6,340.6               36,028.9

                             ----------            ----------



Government Debt as at August 31, 1999 (Note 2): NIL

Debts Guaranteed by Government

 as at August 31, 1999 (Note 3): HK$2,236.6 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

                             August 31, 1999     August 31, 1999

                             ---------------     ---------------

                             HK $ million         HK $ million



Fiscal Reserves at 

 start of period              404,614.1            434,302.4

Add: Consolidated Deficit      (6,340.6)           (36,028.9)

                             -----------          -----------

Fiscal Reserves at
 end of period                398,273.5            398,273.5

                             ----------           -----------

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