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The Government announced today (August 31) its financial results for the four months ended July 31, 2001.

Expenditure for the period April to July 2001 amounted to $75 billion and revenue to $40.7 billion, resulting in a deficit of $34.3 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 $396 billion at July 31, 2001.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.  CONSOLIDATED ACCOUNT
 
                              Year to date
                     Month ended     April 1, 2001
                     July 31, 2001   to July 31, 2001
                     -------------   ----------------
                     HK $ million      HK $ million
 
 Revenue                8,803.5         40,700.1
 Expenditure          (20,171.5)       (75,003.9)
                      -----------       ----------
 Deficit              (11,368.0)       (34,303.8)
                      -----------       ----------
 
 Financing
  Domestic
   Banking Sector (Note 1)  11,021.7       32,306.0
   Non-Bank Sector             346.3        1,997.8
  External                      --             --
                           ----------     ----------
 Total                      11,368.0       34,303.8
                           ----------     ----------
 
 Government Debt as at July 31, 2001 (Note 2): NIL
 Debts Guaranteed by Government as at July 31, 2001 (Note 3): HK$4,065.2 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
                           July 31, 2001  to July 31, 2001
                          -------------   ----------------
                           HK $ million     HK $ million
 
 Fiscal Reserves at 
  start of period            407,341.9        430,277.7
 Add: Consolidated Deficit   (11,368.0)       (34,303.8)
                             -----------      ------------
 Fiscal Reserves at
  end of period              395,973.9        395,973.9
                             ===========      ===========

End/Friday, August 31, 2001

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