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The Government announced today (May 31) its financial results for the first month ended April 30, 2004.

Expenditure for the first month of the current financial year (2004/05) amounted to $19.3 billion and revenue to $15.9 billion, resulting in a deficit of $3.4 billion.

A government spokesman said that a deficit in the initial months of a financial year was not unusual as many major types of revenue including taxes were mostly received towards the end of a financial year.

The fiscal reserves stood at $271.9 billion as at April 30, 2004.

More detailed figures are shown in Tables 1 and 2.

 TABLE 1.  CONSOLIDATED ACCOUNT
 
                                    Month ended
                                    April 30, 2004
                                    --------------
                                    HK $ million
 Revenue                           15,929.1
 Expenditure                      (19,371.6)
                                    ---------------
 Surplus/(Deficit)               (3,442.5)
                                    --------------
 Financing
    Domestic
      Banking Sector (Note 1)         3,161.5
      Non-Bank Sector                   281.0
    External                                -
                                     --------------
 Total                                  3,442.5
                                      ---------------

Government Debt as at

April 30, 2004 (Note 2) NIL

Debts Guaranteed by

Government as at

April 30, 2004 (Note 3) HK$3,831.8 million

Notes:

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

2. The Government was debt free as at April 30, 2004.

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
 
                                     Month ended
                                     April 30, 2004
                                     --------------
                                      HK $ million
 
 Fiscal Reserves at start of period    275,342.7
 Add :	Consolidated Surplus/(Deficit) (3,442.5)
                                             --------------
 Fiscal Reserves at end of period       271,900.2
                                             --------------

Ends/Monday, May 31, 2004

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