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The Government announced today (July 31) its financial results for the three months ended June 30, 2002.

Expenditure for the period April to June 2002 amounted to $56.4 billion and revenue to $30.1 billion, resulting in a deficit of $26.3 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 $346.2 billion at June 30, 2002.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

                                             Year to date

                            Month ended      April 1, 2002 to

                            June 30, 2002    June 30, 2002

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

                            HK $ million     HK $ million


Revenue                       6,673.3          30,100.1


Expenditure                 (18,356.9)        (56,407.7)


Deficit                     (11,683.6)        (26,307.6)


Financing


  Domestic


    Banking Sector(Note 1)   11,358.5         25,325.4


    Non-Bank Sector             325.1            982.2


  External                        -                -


Total                        11,683.6         26,307.6



Government Debt as at June 30, 2002 (Note 2)  NIL


Debts Guaranteed by Government        HK$1,718.2 million

as at June 30, 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 to

                            June 30, 2002    June 30, 2002

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

                            HK $ million     HK $ million


Fiscal Reserves at          357,879.3        372,503.3


  start of period


Add: Consolidated Deficit   (11,683.6)       (26,307.6)


Fiscal Reserves at          346,195.7        346,195.7


  end of period 

End/Wednesday, July 31, 2002

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