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The Government announced today (August 31) its financial results for the four months ended July 31, 2000.

Expenditure for the period April to July 2000 amounted to $70.5 billion and revenue to $48.9 billion, resulting in a deficit of $21.6 billion.

A Government spokesman said that a deficit in the initial months of a financial year was not unusual as many major types of revenue including taxes were mostly received towards the end of a financial year.

The fiscal reserves stood at $422.7 billion at July 31, 2000.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.	CONSOLIDATED ACCOUNT

                                              Year to date
                           Month ended      April 1, 2000
                           July 31, 2000   to July 31, 2000
                           -------------   ----------------
                           HK$ million        HK$ million

Revenue                     11,882.4           48,931.5
Expenditure               (17,924.7)         (70,523.4)
                            -----------        ----------
Deficit                     (6,042.3)         (21,591.9)
                            -----------        ----------
Financing    
  Domestic
    Banking Sector(Note 1) 5,502.6            20,611.5
    Non-Bank Sector            539.7               980.4
  External                        --                   --
                            -----------        ----------
Total                          6,042.3            21,591.9
                            ------------       -----------


Government Debt as at July 31, 2000 (Note 2): 	NIL
Debts Guaranteed by Government as at July 31, 2000 (Note 3) : HK$4,930.1 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, 2000
                           July 31, 2000   to July 31, 2000
                           -------------   ----------------
                            HK$ million        HK$ million

Fiscal Reserves at 
 start of period          428,704.5          444,254.1
Add :
 Consolidated Deficit     (6,042.3)         (21,591.9)
                            ------------       ----------- 
Fiscal Reserves at 
 end of period             422,662.2          422,662.2
                            ============       ===========

End/Thursday, August 31, 2000

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