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The Government announced today (April 28) its provisional financial results for the year ended March 31, 2004.

According to the provisional results, expenditure for the year ended March 31, 2004, amounts to $247.4 billion and revenue to $207.3 billion, resulting in a deficit of $40.1 billion.

The provisional deficit of $40.1 billion is $8.9 billion lower than the revised estimate of $49 billion announced in the 2004-05 Budget Speech. This is because while on the one hand, total expenditure is $5.4 billion lower than the revised estimate, revenue is $3.5 billion better than the revised estimate, largely as a result of additional revenue from profits tax and stamp duty.

The balance of fiscal reserves is $275.3 billion at March 31, 2004, and is $8.9 billion more than the revised estimate of $266.4 billion, mainly because of the less than expected out-turn deficit mentioned above.

A government spokesman added that all figures were provisional pending the final closing of the annual accounts but that experience showed that any changes to the provisional figures were unlikely to be significant.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.  PROVISIONAL ACCOUNTS (Note 1)




                       Month ended           Year ended 


                       March 31, 2004        March 31, 2004


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


                       HK $ million          HK $ million




Revenue                 37,408.3                207,316.2


Expenditure            (24,640.1)              (247,457.0)


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


Surplus/(Deficit)       12,768.2                (40,140.8)


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


                                                       


Financing


  Domestic


    Banking Sector(Note 2) (13,257.4)          39,096.3


	Non-Bank Sector            489.2            1,044.5


  External                       -                 -


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


Total                      (12,768.2)          40,140.8


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




Government Debt as at March 31, 2004 (Note 3)   NIL


Debts Guaranteed by Government as at 


  March 31, 2004 (Note 4)                  HK$3,731.6 million

Notes :

1. All figures are provisional pending the final closing of the annual accounts.

2. Includes transactions with the Exchange Fund and resident banks.

3. The Government is debt free.

4. 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 (PROVISIONAL)




                       Month ended           Year ended 


                       March 31, 2004        March 31, 2004


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


                       HK $ million          HK $ million




Fiscal Reserves at 


  start of period       262,562.1           315,471.1 (Note 5)


Add: Consolidated 


     Surplus/(Deficit)   12,768.2           (40,140.8)


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


Fiscal Reserves at 


end of period           275,330.3           275,330.3


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

Note:

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

Ends/Wednesday, April 28, 2004

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