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The Government announced today (November 29) its financial results for the seven months ended October 31, 2003.

Expenditure for the period April to October 2003 amounted to $141.6 billion and revenue to $60.5 billion, resulting in a deficit of $81.1 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 $234.4 billion at October 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

                      October 31, 2003    October 31, 2003

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

                         HK $ million        HK $ million

Revenue                    14,638.8            60,509.5

Expenditure               (21,369.6)         (141,571.2)

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

Surplus/(Deficit)         (6,730.8)           (81,061.7)

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

Financing

  Domestic

    Banking Sector(Note 1)  6,873.0             80,143.9

    Non-Bank Sector         (142.2)               917.8
	
  External                     --                   --

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

Total                       6,730.8              81,061.7

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

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

Debts Guaranteed by Government          HK$2,881.1 million

as at October 31, 2003 (Note 3)

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

                      October 31, 2003    October 31, 2003

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

                       HK $ million        HK $ million



Fiscal Reserves at     241,140.2        315,471.1 (Note 4)

start of period

Add: Consolidated      (6,730.8)        (81,061.7)

     Surplus/(Deficit)

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

Fiscal Reserves at     234,409.4         234,409.4

end of period         -----------------   ---------------

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

End/Saturday, November 29, 2003

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