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

There was a surplus of $22.3 billion in November, thereby reducing the year-to-date deficit to $3 billion for the period April to November 2004. Expenditure for the period April to November 2004 amounted to $158.6 billion and revenue to $155.6 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 said that the improvement recorded in November was mainly due to proceeds from sale of land and Profits Tax receipts. He added that it was too early at this stage to draw any conclusion on the deficit outturn for the full year.

The fiscal reserves stood at $272.3 billion at November 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
                           November 30, 2004   November 30, 2004
                           -----------------   ---------------
                             HK$ million          HK$ million
Revenue                       41,703.0             155,595.3
Expenditure                  (19,447.7)           (158,606.9)
                           ------------------   --------------
Surplus/(Deficit)             22,255.3              (3,011.6)
                           ------------------   --------------
Financing
  Domestic
    Banking Sector (Note 1)  (22,229.3)              1,832.2
    Non-Banking Sector             (26.0)              1,179.4
  External                           -                     -
                           -------------------   -------------
Total                            (22,255.3)              3,011.6
                           -------------------   -------------

                           

HK$25,751.7 million

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

HK$4,831 million

Notes:

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

2. The total Government debts of $25,751.7 million as at November 30, 2004 comprise :

(i) Toll Revenue Bond of $5,751.7 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
                           November 30, 2004   November 30, 2004
                           -----------------   -----------------
                             HK$ million          HK$ million
Fiscal Reserves at start      250,075.8            275,342.7
  of period
Add: Consolidated Surplus/     22,255.3             (3,011.6)
  (Deficit)
                           -------------------   -------------
Fiscal Reserves at end        272,331.1             272,331.1
  of period
                           ===================  ==============

                           

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