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The Government announced today (April 28) its provisional financial results for the year ended March 31, 2001.
Expenditure for the year ended March 31, 2001 amounted to $232.8 billion and revenue to $225 billion, resulting in a deficit of $7.8 billion.
The fiscal reserves stood at $430.3 billion at March 31, 2001, a decrease of $13.9 billion compared with the balance of $444.2 billion at March 31, 2000. This decrease comprised the deficit of $7.8 billion for the year ended March 31, 2001, and a provision of $6.1 billion for the fall in the market value of the fiscal reserves invested with the Exchange Fund during the period from January 1, 2001 to March 31, 2001.
A Government spokesman said that the deficit of $7.8 billion represented an improvement of $3.6 billion over the revised deficit of $11.4 billion as announced in the Financial Secretary's 2001-02 Budget Speech. Revenue was $2.2 billion better than expected, largely as a result of additional Profits Tax receipts, and expenditure was $1.4 billion lower than forecast.
The Government spokesman further explained that in accordance with prudent accounting approach, the Director of Accounting Services will make a provision against the fiscal reserves to cover any fall in the market value of the investments with the Exchange Fund in the last quarter of a fiscal year. This is required because of the different accounting years of the Government (which ends on 31 March) and the Exchange Fund (which ends on 31 December). As the market value of the investments with the Exchange Fund during January to March 2001 has fallen by $6.1 billion, a provision of an equivalent amount has therefore been made.
The spokesman added that all figures were provisional pending the final closing of the annual accounts but that experience showed that any changes to the provisional figures were unlikely to be significant.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. PROVISIONAL ACCOUNTS (Note 1)Month ended Year ended
March 31, 2001 March 31, 2001
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HK$ million HK$ million
Revenue 33,358.7 225,022.1
Expenditure (32,423.9) (232,839.2)
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Surplus/(Deficit) 934.8 (7,817.1)
Financing
Domestic
Banking Sector
(Note 2) (1,239.3) 7,874.8
Non-Bank Sector 304.5 (57.7)
External -- --
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Total (934.8) 7,817.1
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Government Debt as at March 31, 2001 (Note 3): NIL
Debts Guaranteed by Government as at March 31, 2001 (Note 4): HK$4,605.1 million
Notes :
1. All figures are provisional pending the final closing of the annual accounts.
2. Includes transactions with the Exchange Fund and resident banks.
3. The Government is debt free.
4. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises.
TABLE 2. FISCAL RESERVES (PROVISIONAL)Month ended Year ended
March 31, 2001 March 31, 2001
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HK$ million HK$ million
Fiscal Reserves at
start of period 435,502.2 444,254.1
Consolidated
Surplus/(Deficit) 934.8 (7,817.1)
Provision for loss
in Investments with
the Exchange Fund (6,143.0) (6,143.0)
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Fiscal Reserves at
end of period 430,294.0 430,294.0
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End/Saturday, April 28, 2001
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