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

Expenditure for the period April to August 2003 amounted to $100.5 billion and revenue to $40.3 billion, resulting in a deficit of $60.2 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 $255.2 billion at August 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


                     August 31, 2003     August 31, 2003


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


                     HK $ million         HK $ million 




Revenue               5,404.3              40,251.7


Expenditure          (20,937.8)              (100,495.9)


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


Surplus/(Deficit)    (15,533.5)              (60,244.2)




Financing


  Domestic


    Banking Sector(Note 1)  16,095.8           59,944.7


    Non-Bank Sector         (562.3)            299.5


  External                    --                --


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


Total                       15,533.5           60,244.2




Government Debt as at August 31, 2003 (Note 2)         NIL


Debts Guaranteed by Government as at August 31, 2003 (Note 3): 


                                      HK$2,636.7 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, the Film Guarantee Fund 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 


                  August 31, 2003        August 31, 2003


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


                  HK $ million           HK $ million 




Fiscal Reserves 


at start of period    270,760.4         315,471.1 (Note 4)




Add: Consolidated 


Surplus/(Deficit)     (15,533.5)         (60,244.2)


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


                      


                       


Fiscal Reserves at 


end of period         255,226.9         255,226.9

End/Tuesday, September 30, 2003

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