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The Government announced today (January 31) its financial results for the nine months ended December 31, 2003.

Expenditure for the period April to December 2003 amounted to $182 billion and revenue to $111 billion, resulting in a deficit of $71 billion.

A Government spokesman said that an up-to-date assessment of the likely deficit for the current financial year will be provided by the Financial Secretary in his Budget Speech on March 10, 2004.

The fiscal reserves stood at $244.5 billion at December 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 
                    December 31, 2003  December 31, 2003
                    -----------------  -----------------
                       HK $ million        HK $ million
Revenue                 24,656.1            110,973.1
Expenditure           (20,192.0)         (181,957.0)
                    -----------------  -----------------
Surplus/(Deficit)      4,464.1           (70,983.9)
                    -----------------  -----------------
Financing
  Domestic
    Banking Sector(Note 1)  (4,574.3)        68,342.6
    Non-Bank Sector              110.2          2,641.3
    External                        -                -
                           -------------   ---------------
Total                       (4,464.1)        70,983.9
                          --------------   ---------------

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

Debts Guaranteed by Government as at December 31, 2003 (Note 3) HK$3,257.1 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 
                    December 31, 2003  December 31, 2003
                    -----------------  -----------------
                       HK $ million        HK $ million
Fiscal Reserves at 
start of period       240,023.1          315,471.1 (Note 4)
Add: Consolidated 
Surplus/(Deficit)       4,464.1          (70,983.9)
                   ------------------  -----------------
Fiscal Reserves at 
end of period         244,487.2          244,487.2
                   ------------------  -----------------

Note:

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

Ends/Saturday, January 31, 2004

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