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The Government announced today (November 30) its financial results for the seven months ended October 31, 2004.

Expenditure for the period April to October 2004 amounted to $139.2 billion and revenue to $113.9 billion, resulting in a deficit of $25.3 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 given the performance to date, the outturn deficit was likely to be less than the original forecast deficit of $42.6 billion. However, it was too early at this stage to draw any conclusion on the deficit outturn for the full year, as some major revenue items including salaries and profits taxes were mostly received towards the end of a financial year.

The fiscal reserves stood at $250.1 billion at October 31, 2004.

More detailed figures are shown in Tables 1 and 2.

TABLE 1.  CONSOLIDATED ACCOUNT
 
                                               Year to date 
                           Month ended         April 1, 2004 to 
                           October 31, 2004    October 31, 2004
                           ----------------    ----------------
                             HK$ million           HK$ million
 Revenue                      18,365.2              113,892.3
 Expenditure                 (20,934.6)            (139,159.2)
                            ----------------    ---------------
 Surplus/(Deficit)            (2,569.4)             (25,266.9)
                            ----------------    ---------------
 Financing
    Domestic
      Banking Sector (Note 1)  2,597.8                24,061.5
      Non-Banking Sector         (28.4)                1,205.4
    External                       -                      -
                            -----------------    --------------
 Total                         2,569.4                25,266.9
                            -----------------    --------------

Government Debts as at October 31, 2004 (Note 2)

HK$25,890.1 million

Debts Guaranteed by Government as at October 31, 2004 (Note 3)

HK$4,717 million

Notes:

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

2. The total Government debts of $25,890.1 million as at October 31, 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 
                           October 31, 2004    October 31, 2004
                           ----------------    ------------------
                             HK$ million           HK$ million
 Fiscal Reserves at           252,645.2             275,342.7
   start of period
 Add: Consolidated Surplus/    (2,569.4)            (25,266.9)
   (Deficit)
                             ----------------    ---------------
 Fiscal Reserves at           250,075.8              250,075.8
   end of period             ----------------    -------------

Ends/Tuesday, November 30, 2004

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