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The Government announced today (Saturday) its financial results for the six months ended September 30, 1999.
Expenditure for the period April to September 1999 amounted to $110,454.8 million and revenue to $68,520.5 million, resulting in a deficit of $41,934.3 million.
The fiscal reserves stood at $392,368.1 million at September 30, a decrease of $41,934.3 million compared with the balance of $434,302.4 million at March 31, 1999, the end of the previous financial year.
On the deficit, a Government spokesman explained that since the Government's accounts were prepared on a cash basis, they reflected the incidence of receipts and payments during the period.
"The bulk of collections from Profits Tax and Salaries Tax were normally received in the latter part of the year, with roughly 85% of Profits Tax in the last five months and 80% of Salaries Tax in the last three months," he said.
"Therefore, it was not unusual, even in good years, to see a substantial deficit in the first half of the financial year," he added.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
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Year to date
Month Ended Apr 1, 1999 to
Sept 30, 1999 Sept 30, 1999
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HK$ million HK$ million
Revenue 10,877.2 68,520.5
Expenditure (16,782.6) (110,454.8)
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Deficit (5,905.4) (41,934.3)
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Financing
Domestic
Banking Sector(Note 1) ¡@6,230.3 40,161.1
Non-Bank Sector ¡@ (324.9) 1,773.2
External -- --
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Total ¡@ 5,905.4 41,934.3
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Government Debt as at September 30, 1999 (Note 2): NIL
Debts Guaranteed by Government as at
September 30, 1999 (Note 3): HK$2,483.6 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium
Enterprises.
TABLE 2. FISCAL RESERVES
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Year to date
Month Ended Apr 1, 1999 to
Sept 30, 1999 Sept 30, 1999
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HK$ million HK$ million
Fiscal Reserves at
start of period 398,273.5 434,302.4
Add: Consolidated Deficit (5,905.4) (41,934.3)
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Fiscal Reserves at
end of period 392,368.1 392,368.1
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End/Saturday, October 30, 1999
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