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The Government announced today (February 28) its financial results for the ten months ended January 31, 2004.

Expenditure for the period April 2003 to January 2004 amounted to $202.9 billion and revenue to $157.7 billion, resulting in a deficit of $45.2 billion. There was a surplus of $25.8 billion in January.

A Government spokesman said that the surplus of $25.8 billion for the month of January 2004 reflected the salaries tax and profits tax collections in that month. He added 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 $270.3 billion at January 31, 2004.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.  CONSOLIDATED ACCOUNT

                                        Year to date 

                    Month ended         April 1, 2003 to

                    January 31, 2004    January 31, 2004

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

                      HK $ million          HK $ million

Revenue                46,747.7              157,720.8

Expenditure           (20,927.0)            (202,884.0)

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

Surplus/(Deficit)      25,820.7              (45,163.2)

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

Financing

  Domestic

    Banking Sector(Note 1)  (24,574.9)       43,767.7

    Non-Bank Sector          (1,245.8)        1,395.5

  External                        -               -
                            -----------    -----------------

Total                        (25,820.7)      45,163.2

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


Government Debt as at January 31, 2004 (Note 2)  NIL

Debts Guaranteed by Government as 

  at January 31, 2004 (Note 3)               HK$3,445.9 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

                January 31, 2004        January 31, 2004

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

                  HK $ million            HK $ million

Fiscal Reserves at    244,487.2           315,471.1 (Note 4)

  start of period

Add: Consolidated     25,820.7            (45,163.2)

     Surplus/(Deficit)

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

Fiscal Reserves at   270,307.9            270,307.9

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

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

Ends/Saturday, February 28, 2004

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