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The Government announced today (June 29) its financial results for the two months ended May 31, 2002.

Expenditure for the period April to May 2002 amounted to $38 billion and revenue to $23.4 billion, resulting in a deficit of $14.6 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 $357.9 billion at May 31, 2002.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

                                            Year to date

                         Month ended        April 1, 2002 

                         May 31, 2002       to May 31, 2002

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

                         HK $ million       HK $ million

  Revenue                    10,013.5           23,426.8

  Expenditure               (19,584.9)         (38,050.8)

  Deficit                    (9,571.4)         (14,624.0)

  Financing

    Domestic

      Banking Sector          9,076.3           13,966.9

      (Note 1)

      Non-Bank Sector           495.1              657.1

    External                      -                  -

  Total                       9,571.4           14,624.0

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

  Debts Guaranteed by Government          HK$1,975.5 million

    as at May 31, 2002 (Note 3) 

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, 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, 2002

                          May 31, 2002       to May 31, 2002

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

                          HK $ million       HK $ million 

  Fiscal Reserves at         367,450.7          372,503.3

    start of period

  Add: Consolidated Deficit   (9,571.4)         (14,624.0)

  Fiscal Reserves at         357,879.3          357,879.3

    end of period 

End/Saturday, June 29, 2002

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