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The Government announced today (June 30) its financial results for the two months ended May 31, 2003.

Expenditure for the period April to May 2003 amounted to $40.5 billion and revenue to $23.8 billion, resulting in a deficit of $16.7 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 $298.8 billion at May 31, 2003.

More detailed figures are shown in Tables 1 and 2.

 TABLE 1. CONSOLIDATED ACCOUNT
                                           Year to date 
                        Month ended        April 1, 2003 to
                        May 31, 2003       May 31, 2003
                       --------------     -----------------
                        HK $ million        HK $ million
 Revenue                  11,091.9           23,863.6
 Expenditure             (21,240.2)         (40,518.6)
                       --------------     -----------------
 Surplus/(Deficit)       (10,148.3)         (16,655.0)
                       --------------     -----------------
 Financing
 Domestic
 Banking Sector(Note 1)    9,286.5           15,601.6
 Non-Bank Sector            861.8             1,053.4
 External                    -                  -
                       ---------------     ----------------
 Total                     10,148.3          16,655.0
                       ---------------     ----------------
 
 Government Debt as at May 31, 2003(Note 2)      NIL
 Debts Guaranteed by Government as           HK$1,830.6 million at May 31, 2003 (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, the SME 
Loan Guarantee Scheme and the Loan Guarantee Scheme for Severe Acute Respiratory 
Syndrome Impacted Industries.
 
 TABLE 2. FISCAL RESERVES
 
 
 
                                         Year to date 
                        Month ended      April 1, 2003 to
                        May 31, 2003     May 31, 2003
                        ------------     ------------------
                        HK $ million     HK $ million
 Fiscal Reserves at     308,964.4        315,471.1 (Note 4)
 start of period
 Add: Consolidated      (10,148.3)       (16,655.0)
 Surplus/(Deficit)
                        --------------   ------------------
 Fiscal Reserves at      298,816.1        298,816.1
    end of period       ---------------  ------------------
 
 
 Note:
 
 4.Including the Lotteries Fund's balance of $4,069.2 million.

End/Monday, June 30, 2003

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