Financial results for six months ended September 30, 2001

**************************************************

The Government announced today (October 31) its financial results for the six months ended September 30, 2001.

Expenditure for the period April to September 2001 amounted to $115.3 billion and revenue to $54.6 billion, resulting in a deficit of $60.7 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. Nevertheless, he added that, due to the recent slowdown of our economy and the uncertainties in the world economic situation, revenue to be received in the rest of the year would be much lower than expected.

The fiscal reserves stood at $369.5 billion at September 30, 2001.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

Year to date

Month ended Apr 1, 2001 to

Sept 30, 2001 Sept 30, 2001

------------- ---------------

HK$ million HK$ million

Revenue 7,549.0 54,579.2

Expenditure (19,285.4) (115,318.6)

---------- ------------

Deficit (11,736.4) (60,739.4)

---------- ------------

Financing

Domestic

Banking Sector (Note 1) 11,966.2 59,180.1

Non-Bank Sector (229.8) 1,559.3

External -- --

---------- ------------

Total 11,736.4 60,739.4

---------- ------------

Government Debt as at September 30, 2001 (Note 2): NIL

Debts Guaranteed by Government as at September 30, 2001 (Note 3): HK$3,626.4 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 

                            Sept 30, 2001  Sept 30, 2001

                            -------------  --------------- 

                             HK$ million      HK$ million


Fiscal Reserves at


 start of period            381,274.7         430,277.7


Add: Consolidated Deficit (11,736.4)        (60,739.4)

                              -----------       -----------

Fiscal Reserves at

 end of period                369,538.3         369,538.3

                              ===========      ===========

End/Wednesday, October 31, 2001

NNNN