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The Government announced today (December 31) its financial results for the eight months ended November 30, 2001.

Expenditure for the period April to November 2001 amounted to $154.6 billion and revenue to $99.7 billion, resulting in a deficit of $54.9 billion.

There was a surplus of $8 billion in November. A Government spokesman said that the improvement was mainly due to Profits Tax receipts during the month. 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 $375.3 billion at November 30, 2001.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.	CONSOLIDATED ACCOUNT




                     Month ended          Year to date


                     November 30, 2001   April 1, 2001 to


                                         November 30, 2001 




                     HK $ million          HK $ million




Revenue              27,569.6              99,685.4


Expenditure          (19,534.8)            (154,617.4)


                     __________            ___________


Surplus/(Deficit)      8,034.8             (54,932.0)


                     __________            __________




Financing


  Domestic


    Banking Sector


           (Note 1)   (8,258.2)             53,138.4


    Non-Bank Sector     223.4                1,793.6


  External                -                     -


	                __________             __________


Total                (8,034.8)              54,932.0


                     _________              __________

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

NIL

Debts Guaranteed by Government as at November 30, 2001 (Note 3):

HK$3,364.8 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 and the Self-employment Business Start-up Assistance Scheme.

TABLE 2.     FISCAL RESERVES




                    Month ended            Year to date


                    November 30, 2001    April 1, 2001 to


                                         November 30, 2001




                    HK $ million         HK $ million




Fiscal Reserves at


 start of period     367,310.9             430,277.7




Add : Consolidated 


      Surplus/(Deficit) 8,034.8           (54,932.0)


                      _________           __________


Fiscal Reserves at


 end of period       375,345.7             375,345.7


                     _________             _________

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