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The Government announced today (August 31) its financial results for the four months ended July 31, 2002.

Expenditure for the period April to July 2002 amounted to $78.7 billion and revenue to $38.6 billion, resulting in a deficit of $40.1 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 $332.4 billion at July 31, 2002.

More detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT

                                               Year to date
                             Month ended     April 1, 2002 to
                             July 31, 2002   July 31, 2002
                             -------------   ---------------
                             HK $ million    HK $ million 

Revenue                      8,512.9         38,613.0

Expenditure                 (22,285.8)       (78,693.5)

                     

Deficit                     (13,772.9)       (40,080.5)



Financing

  Domestic

    Banking Sector (Note 1)  13,691.7         39,017.1

    Non-Bank Sector              81.2          1,063.4

  External                         -                -
                         

Total                        13,772.9         40,080.5



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

Debts Guaranteed by Government as             HK$1,436.4 million
  at July 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, 2002 to

                               July 31, 2002   July 31, 2002

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

                               HK $ million    HK $ million 

Fiscal Reserves at             346,195.7       372,503.3

  start of period

Add : Consolidated Deficit     (13,772.9)      (40,080.5)

                    

Fiscal Reserves at             332,422.8       332,422.8

  end of period

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