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

Expenditure for the period April to September 2003 amounted to $120.2 billion and revenue to $45.9 billion, resulting in a deficit of $74.3 billion.

A Government spokesman explained that some major revenue items including salaries and profits taxes were mostly received towards the end of a financial year. It was too early at this stage to draw any conclusion on the deficit outturn for the full year.

The fiscal reserves stood at $241.1 billion at September 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 
                   September 30, 2003   September 30, 2003
                  ------------------   -----------------
                        HK $ million         HK $ million
 Revenue                   5,619.0                45,870.7
 Expenditure            (19,705.7)             (120,201.6)
                   -------------------   ------------------
 Surplus/(Deficit)      (14,086.7)              (74,330.9)
                   -------------------   ------------------
 Financing
   Domestic
     Banking Sector(Note 1)    13,326.2           73,270.9
     Non-Bank Sector              760.5            1,060.0
   External                     --                   --
                 -------------------   --------------------
 Total                     14,086.7                74,330.9

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

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

Debts Guaranteed by Government as at HK$2,771.8 million

September 30, 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, 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 
                   September 30, 2003   September 30, 2003
                 ------------------   -----------------
                          HK $ million         HK $ million
 Fiscal Reserves at      255,226.9            315,471.1 (Note 4)
   start of period
 Add: Consolidated Surplus/   (14,086.7)            (74,330.9)
      (Deficit)
                 -------------------   --------------------
 Fiscal Reserves         241,140.2             241,140.2
   at end of period          
                -------------------   ---------------------

Note:

4. Including the Lotteries Fund's balance of $4,069.2 million.

Ends/Friday, October 31, 2003

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