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The Government announced today (September 29) its financial results for the five months ended August 31, 2001.

Expenditure for the period April to August 2001 amounted to $96 billion and revenue to $47 billion, resulting in a deficit of $49 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 $381.3 billion at August 31, 2001.

More detailed figures are shown in Tables 1 and 2.

 TABLE 1.  CONSOLIDATED ACCOUNT
 
                                                    Year to date
                                   Month ended    Apr 1, 2001 to
                                   Aug 31, 2001   Aug 31, 2001
                                   ------------   --------------
                                   HK$ million     HK$ million
 
 Revenue                            6,330.1          47,030.2
 Expenditure                     (21,029.3)       (96,033.2)
                                   ----------       ----------
 Deficit                          (14,699.2)       (49,003.0)
 
 Financing
   Domestic
     Banking Sector (Note 1)    14,907.9         47,213.9
     Non-Bank Sector                (208.7)         1,789.1
   External                            --                --
                                    ----------      ----------
 Total                              14,699.2         49,003.0
                                    ----------      ----------

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

Debts Guaranteed by Government as at August 31, 2001 (Note 3): HK$3,789.2 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    Apr 1, 2001 to
                                   Aug 31, 2001   Aug 31, 2001
                                   ------------   --------------
                                   HK$ million     HK$ million
 
 Fiscal Reserves at
  start of period                395,973.9        430,277.7
 Add: Consolidated Deficit     (14,699.2)       (49,003.0)
                                   -----------      ----------- 
 Fiscal Reserves at
  end of period                   381,274.7        381,274.7
                                   ===========      ===========

End/Saturday, September 29, 2001

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