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

Expenditure for the period April to July 2003 amounted to $79.6 billion and revenue to $34.9 billion, resulting in a deficit of $44.7 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 $270.8 billion at July 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 
                           July 31, 2003     July 31, 2003
                        --------------    -----------------
                           HK $ million       HK $ million 
 
 Revenue                     4,749.5            34,847.4
 Expenditure               (20,551.0)          (79,558.1)
                          ------------         -----------
 Surplus/(Deficit)         (15,801.5)          (44,710.7)
                          -------------         -----------
 
 
 
 Financing
   Domestic
     Banking Sector(Note 1) 16,015.2           43,848.9
     Non-Bank Sector          (213.7)             861.8
   External                     -                  -
                          -----------         ------------
 Total                      15,801.5            44,710.7
                          -----------         -------------
 
 Government Debt as at July 31, 2003 (Note 2)   NIL
 Debts Guaranteed by Government as            HK$2,431.9 
 at July 31, 2003 (Note 3)                         million
  
 
 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 
                           July 31, 2003     July 31, 2003
                        --------------    -----------------
                           HK $ million       HK $ million 
 Fiscal Reserves at         286,561.9         315,471.1 (Note 4)
   start of period
 Add: Consolidated           (15,801.5)       (44,710.7)
      Surplus/(Deficit)
                      --------------     ------------------
 Fiscal Reserves at end     270,760.4         270,760.4
   of period 
                         --------------      -----------------
 
 Note:
 
 4.  Including the Lotteries Fund's balance of $4,069.2 million.

End/Saturday, August 30, 2003

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