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The Government announced today (February 28) its financial results for the ten months ended January 31, 2002.

Expenditure for the period April 2001 to January 2002 amounted to $195.2 billion and revenue to $154.7 billion, resulting in a deficit of $40.5 billion. There was a surplus of $20.2 billion in January.

A government spokesman said the surplus of $20.2 billion for the month of January 2002 reflected the salary tax and profits tax collections in that month.

He also explained that the deficit for the year ending March 31, 2002 would likely be substantially larger than the deficit at the end of January 2002. This was because the Government expected expenditure to be incurred during the two months of February and March 2002 to greatly exceed revenue to be collected during these two months. The main reason for this is that minimal revenue is anticipated from investment income of fiscal reserves for the year of 2001 which will be credited into the Government accounts in the month of March 2002. In the past, revenue from this source helped to reduce deficit, if any, for that financial year.

He added that an up-to-date assessment of the likely deficit for the current financial year will be announced by the Financial Secretary when he delivers the 2002-03 Budget Speech to the Legislative Council on March 6, 2002.

The fiscal reserves stood at $389.7 billion at January 31, 2002.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.   CONSOLIDATED ACCOUNT


                                              Year to date 


                           Month ended        April 1, 2001 to 


                           January 31, 2002   January 31, 2002


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


                           HK $ million       HK $ million


Revenue                    41,372.2           154,718.5


Expenditure               (21,128.2)         (195,258.8)




Surplus/(Deficit)           20,244.0          (40,540.3)




Financing


  Domestic


    Banking Sector(Note 1) (19,071.5)         40,024.3


    Non-Bank Sector         (1,172.5)            516.0


  External


Total                      (20,244.0)         40,540.3




Government Debt as at January 31, 2002 (Note 2)  NIL


Debts Guaranteed by Government                   HK$2,629 million


    as at January 31, 2002 (Note 3) 

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, the Self-employment Business Start-up Assistance Scheme and the SME Business Installations and Equipment Loan Guarantee Scheme.

TABLE 2. FISCAL RESERVES

                                              Year to date 


                           Month ended        April 1, 2001 to 


                           January 31, 2002   January 31, 2002


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


                           HK $ million       HK $ million


Fiscal Reserves at         369,493.4          430,277.7


   start of period


Add:  Consolidated          20,244.0          (40,540.3)


      Surplus/(Deficit)


                       


Fiscal Reserves at         389,737.4           389,737.4


   end of period 

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