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The Government announced today (September 30) its financial results for the five months ended August 31, 2002.

Expenditure for the period April to August 2002 amounted to $99.4 billion and revenue to $43.4 billion, resulting in a deficit of $56 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 $316.5 billion at August 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

                                   August 31, 2002   August 31, 2002

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

                                      HK $ million     HK $ million

  Revenue                              4,757.7          43,370.7

  Expenditure                        (20,719.7)        (99,413.2)

  Deficit                            (15,962.0)        (56,042.5)

  Financing

    Domestic

      Banking Sector(Note 1)          15,871.5          54,888.6

      Non-Bank Sector                     90.5           1,153.9

    External                               -                 -

  Total                               15,962.0          56,042.5

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

  Debts Guaranteed by Government as                HK$1,294.9 million

    at August 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 to

                                   August 31, 2002   August 31, 2002

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

                                      HK $ million     HK $ million 

  Fiscal Reserves at start of period  332,422.8        372,503.3

  Add: Consolidated Deficit           (15,962.0)       (56,042.5)

  Fiscal Reserves at end of period    316,460.8        316,460.8

End/Monday, September 30, 2002

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