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The Government announced today (December 31) its financial results for the eight months ended November 30, 2003.

Expenditure for the period April to November 2003 amounted to $161.7 billion and revenue to $86.3 billion, resulting in a deficit of $75.4 billion.

There was a surplus of $5.6 billion in November. A Government spokesman said that the improvement was mainly due to Profits Tax receipts during the month. He added that it was too early at this stage to draw any conclusion on the deficit outturn for the full year.

The fiscal reserves stood at $240 billion at November 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
                     November 30, 2003   November 30, 2003
                    -----------------   ------------------
                      HK $ million          HK $ million
 Revenue                25,807.5               86,317.0
 Expenditure           (20,193.8)            (161,765.0)
                    -----------------   -------------------
 Surplus/(Deficit)       5,613.7              (75,448.0)
                   -----------------   --------------------
 Financing
    Domestic
      Banking Sector(Note 1)  (7,227.0)        72,916.9
      Non-Bank Sector        1,613.3           2,531.1
    External                   -                   -
                    ----------------   --------------------
 Total                 (5,613.7)             75,448.0
                    ----------------   --------------------
 
 Government Debt as at November 30, 2003 (Note 2)  NIL
 
 Debts Guaranteed by Government as 
    at November 30, 2003 (Note 3)                   HK$3,068.5 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, 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
                   November 30, 2003   November 30, 2003
                  -----------------   ------------------
                    HK $ million          HK $ million
 Fiscal Reserves at 
    start of period     234,409.4        315,471.1 (Note 4)
 Add: Consolidated 
    Surplus/(Deficit)   5,613.7          (75,448.0)
                  -----------------   --------------------
 Fiscal Reserves at end 
    of period           240,023.1           240,023.1
                  ------------------   --------------------

Note:

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

Ends/Wednesday, December 31, 2003

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