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The Government announced today (October 31) its financial results for the six months ended September 30, 2000.

Expenditure for the period April to September 2000 amounted to $107.3 billion and revenue to $66.7 billion, resulting in a deficit of $40.6 billion.

A Government spokesman said that a deficit in the first half 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 $403.6 billion at September 30, 2000.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.	CONSOLIDATED ACCOUNT

                                                   Year to date
                                 Month ended     Apr 1, 2000 to
                                 Sept 30, 2000  Sept 30, 2000
                                 -------------  --------------
                                  HK$ million     HK$ million

Revenue                            9,520.2          66,669.0
Expenditure                     (17,970.8)      (107,300.4)
                                  -----------     ------------
Deficit                           (8,450.6)       (40,631.4)
                                  -----------     ------------

Financing
  Domestic
    Banking Sector(Note 1)      8,628.1          39,811.7
    Non-Bank Sector                (177.5)            819.7
  External                             --                --
                                  -----------      -----------
Total                               8,450.6          40,631.4
                                  -----------      -----------

Debts Guaranteed by Government as at September 30, 2000 (Note 3): HK$4,897.6 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     Apr 1, 2000 to
                               Sept 30, 2000  Sept 30, 2000
                               -------------  --------------
                                HK$ million     HK$ million

Fiscal Reserves at 
 start of period              412,073.3        444,254.1
Add: Consolidated Deficit    (8,450.6)       (40,631.4)
                                -----------     ------------
Fiscal Reserves at 
 end of period                 403,622.7        403,622.7
                                ===========     ============

End/Tuesday, October 31, 2000

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