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

Expenditure for the period April to June 2003 amounted to $59 billion and revenue to $30.1 billion, resulting in a deficit of $28.9 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 $286.6 billion at June 30, 2003.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.     CONSOLIDATED ACCOUNT


                                          Year to date 


                      Month ended         April 1, 2003 to


                     June 30, 2003        June 30, 2003


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


                     HK $ million          HK $ million


Revenue                6,234.3               30,097.9


Expenditure           (18,488.5)            (59,007.1)


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


Surplus/(Deficit)     (12,254.2)            (28,909.2)


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




Financing


 Domestic


  Banking Sector(Note 1)  12,232.1            27,833.7


  Non-Bank Sector           22.1              1,075.5


 External                   --                  --


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


Total                     12,254.2             28,909.2


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


Government Debt as at June 30, 2003 (Note 2)         NIL


Debts Guaranteed by Government as at 


June 30, 2003 (Note 3)                     HK$2,102.4 million

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


                           June 30, 2003     June 30, 2003


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


                           HK $ million      HK $ million




Fiscal Reserves at 


start of period              298,816.1       315,471.1(Note 4)


Add: Consolidated 


Surplus/(Deficit)            (12,254.2)      (28,909.2)


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


Fiscal Reserves at 


end of period                286,561.9        286,561.9

End/Thursday, July 31, 2003

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