*********************************************

The Government announced today (January 30) its financial results for the nine months ended December 31, 2002.

Expenditure for the period April to December 2002 amounted to $177.6 billion and revenue to $100.3 billion, resulting in a deficit of $77.3 billion.

A Government spokesman said that an up-to-date assessment of the likely deficit for the current financial year will be provided by the Financial Secretary in his Budget Speech on March 5, 2003.

The fiscal reserves stood at $295.2 billion at December 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

                      December 31, 2002    December 31, 2002

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

                         HK $ million         HK $ million

  Revenue                12,960.0               100,358.1

  Expenditure           (19,384.5)             (177,627.1)

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

  Surplus/(Deficit)     (6,424.5)               (77,269.0)

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

  Financing

     Domestic                            

       Banking Sector(Note 1) 6,309.8            75,761.1

       Non-Bank Sector        114.7              1,507.9

     External                  --                  --

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

  Total                      6,424.5             77,269.0

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

Debts Guaranteed by Government HK$1,318.6 million

as at December 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 

                       December 31, 2002    December 31, 2002

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

                         HK $ million         HK $ million

  Fiscal Reserves at      301,658.8            372,503.3

  start of period

  Add:Consolidated        (6,424.5)            (77,269.0)

  Surplus/(Deficit)

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

  Fiscal Reserves at      295,234.3             295,234.3

     end of period          

                        =================     ===============

End/Thursday, January 30, 2003

NNNN