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The Government announced today (Tuesday) its financial results for the seven months ended October 31, 1999.
Expenditure for the period April to October 1999 amounted to $128,548.8 million and revenue to $78,493.4 million, resulting in a deficit of $50,055.4 million.
The fiscal reserves stood at $384,247 million at October 31, a decrease of $50,055.4 million compared with the balance of $434,302.4 million at March 31, 1999, the end of the previous financial year.
On the deficit, a Government spokesman explained that since the Government's accounts were prepared on a cash basis, they reflected the incidence of receipts and payments during the period.
"The bulk of collections from Profits Tax and Salaries Tax were normally received in the latter part of the year, with roughly 85% of Profits Tax in the last five months and 80% of Salaries Tax in the last three months," he said.
"Therefore, it was not unusual, even in good years, to see a deficit at this time of the financial year," he added.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Year to date
Month Ended Apr 1, 1999 to
Oct 31, 1999 Oct 31, 1999
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HK$ million HK$ million
Revenue 9,972.9 78,493.4
Expenditure (18,094.0) (128,548.8)
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Deficit (8,121.1) (50,055.4)
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Financing
Domestic
Banking Sector(Note 1) 8,808.1 48,969.2
Non-Bank Sector (687.0) 1,086.2
External -- --
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Total 8,121.1 50,055.4
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Government Debt as at October 31, 1999 (Note 2): NIL
Debts Guaranteed by Government as at
October 31, 1999 (Note 3): HK$2,451.7 million
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The Government is debt free.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES
Year to date
Month Ended Apr 1, 1999 to
Oct 31, 1999 Oct 31, 1999
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HK$ million HK$ million
Fiscal Reserves at
start of period 392,368.1 434,302.4
Add: Consolidated Deficit (8,121.1) (50,055.4)
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Fiscal Reserves at end
of period 384,247.0 384,247.0
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As December 31, 1999 has been appointed as an additional general holiday, the financial results for the eight months ended November 30, 1999 will be released on December 30, 1999, one day earlier than that announced in the Advance Release Calendar.
End/Tuesday, November 30, 1999
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