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The Government announced today (October 30) its financial results for the six months ended September 30, 2004.

Expenditure for the period April to September 2004 amounted to $118.2 billion and revenue to $95.5 billion, resulting in a deficit of $22.7 billion. The revenue for the period, and thus the deficit, have taken account of the $6 billion Toll Revenue Bond and $20 billion Government bonds and notes issued in May and July 2004 respectively.

A government spokesman explained that some major revenue items including salaries and profits taxes were mostly received towards the end of a financial year. It was too early at this stage to draw any conclusion on the deficit outturn for the full year.

The fiscal reserves stood at $252.6 billion at September 30, 2004.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.  CONSOLIDATED ACCOUNT



                                             Year to date 
                        Month ended          April 1, 2004 to 
                        September 30, 2004   September 30, 2004
                        ------------------   -----------------
                            HK$ million           HK$ million

Revenue                       12,272.1            95,527.1

Expenditure                  (19,031.0)         (118,224.6)
                        -------------------   ----------------
Surplus/(Deficit)            (6,758.9)           (22,697.5)
                        -------------------   ----------------

Financing
   Domestic
     Banking Sector (Note 1)  6,682.6            21,463.7
     Non-Banking Sector           76.3             1,233.8
   External                       -                        -
                         -------------------   ---------------

Total                         6,758.9              22,697.5
                         -------------------   ---------------

Government Debts as at September 30, 2004 (Note 2)

     HK$25,890.1 million

Debts Guaranteed by Government as at September 30, 2004 (Note 3) 

     HK$4,646.5 million

Notes:

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

2. The total Government debts of $25,890.1 million as at September 30, 2004 comprise:

(i) Toll Revenue Bond of $5,890.1 million to be repaid to Hong Kong Link 2004 Limited by the net toll revenue receivable of Government tolled tunnels and bridges. Of the outstanding Toll Revenue Bond, $450 million will mature within the next 12 months and the rest will mature by May 2016 but may be fully repaid before then; and

(ii) Retail bonds and institutional notes totalling $20 billion (including US$1.25 billion denominated in United States dollars). The maturity dates of these bonds and notes fall within the period July 2006 to July 2019.

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, 2004 to 
                        September 30, 2004   September 30, 2004
                        ------------------   -----------------
                            HK$ million          HK$ million
Fiscal Reserves at         259,404.1             275,342.7
   start of period

Add: Consolidated Surplus/  (6,758.9)            (22,697.5)
   (Deficit)                      
                           -------------------   -----------------
Fiscal Reserves at end     252,645.2            252,645.2
   of period           -------------------   ---------------

Ends/Saturday, October 30, 2004

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