31, 2005
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The Government announced today (April 27) its provisional financial results for the year ended March 31, 2005.
Expenditure for the year ended March 31, 2005 amounted to $242.2 billion and revenue to $263.6 billion, resulting in a surplus of $21.4 billion. The revenue for the year, and thus the surplus, have taken account of the $6 billion Toll Revenue Bond and $20 billion Government bonds and notes issued in May and July 2004 respectively.
The fiscal reserves stood at $296 billion at March 31, 2005, an increase of $20.7 billion compared with the balance of $275.3 billion at March 31, 2004. This increase comprised the surplus of $21.4 billion for the year ended March 31, 2005, offset partly by a provision of $0.7 billion for the fall in the market value of the fiscal reserves invested with the Exchange Fund during the period from January 1, 2005 to March 31, 2005.
A Government spokesman said that the provisional surplus of $21.4 billion represented an improvement of $9.4 billion over the revised surplus of $12 billion forecast in the 2005-06 Budget. Revenue was $1.9 billion better than expected, largely as a result of additional receipts from salaries tax, stamp duties and land premium, and expenditure was $7.5 billion lower than forecast.
The spokesman added that all figures were provisional pending the final closing of the annual accounts but that experience showed that any changes to the provisional figures were unlikely to be significant.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (PROVISIONAL)
Month ended Year ended
March 31, 2005 March 31, 2005
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HK$ million HK$ million
Revenue 30,107.5 263,578.6
Expenditure (23,463.6) (242,222.8)
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Surplus 6,643.9 21,355.8
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Financing
Domestic
Banking Sector(Note 1) (7,321.9) (22,081.1)
Non-Banking Sector 678.0 725.3
External - -
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Total (6,643.9) (21,355.8)
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Government Debts as at March 31, 2005 (Note 2)
HK$25,610.5 million
Debts Guaranteed by Government as at March 31, 2005 (Note 3)
HK$5,192.7 million
Notes:
1. Includes transactions with the Exchange Fund and resident banks.
2. The total Government debts of $25,610.5 million as at March 31, 2005 comprise :
(i) Toll Revenue Bond of $5,610.5 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$1.25 billion denominated in United States dollars). The maturity dates of these bonds and notes fall within the period July 2006 to July 2019.
3. Guarantees provided under the Special Finance Scheme for Small and Medium Enterprises, the Self-employment Business Start-up Assistance Scheme, the SME Loan Guarantee Scheme, the Film Guarantee Fund and the Loan Guarantee Scheme for Severe Acute Respiratory Syndrome Impacted Industries.
TABLE 2. FISCAL RESERVES (PROVISIONAL)
Month ended Year ended
March 31, 2005 March 31, 2005
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HK$ million HK$ million
Fiscal Reserves at
start of period 290,054.6 275,342.7
Consolidated Surplus 6,643.9 21,355.8
Provision for fall in the
market value of investments
with the Exchange Fund (717.6) (717.6)
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Fiscal Reserves at
end of period 295,980.9 295,980.9
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Ends/Wednesday, April 27, 2005
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