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The Government announced today (June 30) its financial results for the two months ended May 31, 2001.

Expenditure for the period April to May 2001 amounted to $37.3 billion and revenue to $24.2 billion, resulting in a deficit of $13.1 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 $417.1 billion at May 31, 2001.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

                                   Year to date
                           Month ended     April 1, 2001
                           May 31, 2001    to May 31, 2001
                           ------------    ---------------
                           HK$ million       HK$ million
Revenue                       8,201.9            24,191.5
Expenditure                 (18,530.4)          (37,334.2)
                            ----------         -----------
Deficit                     (10,328.5)          (13,142.7)
                            ----------         -----------
Financing
  Domestic
    Banking Sector (Note 1)   9,826.7            11,318.2
    Non-Bank Sector             501.8             1,824.5
  External                       --                  --
                             ----------         ----------
Total                         10,328.5            13,142.7
                             ----------         ----------

Government Debt as at May 31, 2001 (Note 2): NIL

Debts Guaranteed by Government as at May 31, 2001 (Note 3): HK$4,455.7 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     April 1, 2001
                          May 31, 2001    to May 31, 2001
                          ------------    ---------------
                          HK$ million       HK$ million
Fiscal Reserves at
 start of period            427,463.5          430,277.7
Add: Consolidated Deficit   (10,328.5)         (13,142.7)
                           -----------        -----------
Fiscal Reserves at          417,135.0          417,135.0
 end of period              ==========         ==========

The spokesman further said that as March 29 and 30, 2002 are general holidays, the financial results for the eleven months ended February 28, 2002 will be released on March 28, 2002 (Thursday), two days earlier than that announced in the Advance Release Calendar.

End/Saturday, June 30, 2001

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