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The Government today (April 29) announced its provisional financial results for the year ended March 31, 2006.
Expenditure for the year ended March 31, 2006, amounted to $233.1 billion and revenue to $247.1 billion, resulting in a surplus of $14 billion.
A government spokesman said that the surplus of $14 billion represented an improvement of $9.9 billion over the $4.1 billion surplus forecast in the 2006-07 Budget. He said the improved financial position was mainly due to higher collections in stamp duties, salaries tax, profits tax and land premium towards the end of the financial year. These increases in revenue totalled $5.4 billion.
On the other hand, expenditure was $4.5 billion lower than forecast as a result of the strenuous efforts of departments to rein in expenditure and spend only where necessary.
The spokesman noted that the variance in expenditure between the revised estimate and the provisional results this year was actually smaller than those in the previous two years, i.e. $4.5 billion in 2005-06 compared with $7.5 billion in 2004-05 and $5.4 billion in 2003-04. This reflects continuous efforts of various bureaux and departments to improve their financial management.
Furthermore, of the $4.5 billion variance in expenditure in 2005-06, only $2.2 billion was due to underspending in operating expenditure, which was just about one percent of the total operating expenditure for the year.
The fiscal reserves stood at $310.7 billion at March 31, 2006, an increase of $14.7 billion compared with the balance of $296.0 billion at March 31, 2005. This increase comprised the surplus of $14.0 billion for the year ended March 31, 2006 and $0.7 billion for write-back of provision for loss in investments with the Exchange Fund made in 2004-05.
The spokesman added that all figures were provisional pending the final closing of the annual accounts but experience showed that any changes to the provisional figures were unlikely to be significant.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (PROVISIONAL)
Month ended Year ended
March 31, 2006 March 31, 2006
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HK$ million HK$ million
Revenue 24,854.7 247,027.1
Expenditure (22,928.4) (233,069.9)
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Surplus 1,926.3 13,957.2
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Financing
Domestic
Banking Sector(Note 1) (2,072.5) (15,490.2)
Non-Banking Sector 146.2 1,533.0
External - -
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Total (1,926.3) (13,957.2)
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Government Debts as at March 31, 2006 (Note 2)
HK$24,589.9 million
Debts Guaranteed by Government as at March 31, 2006 (Note 3)
HK$5,320.4 million
Notes:
1. Includes transactions with the Exchange Fund and resident banks.
2. The total government debts of $24,589.9 million as at March 31, 2006 comprise :
(i) Toll Revenue Bond of $4,639.9 million to be repaid to Hong Kong Link 2004 Limited by the net toll revenue receivable of government tolled tunnels and bridges. The outstanding Toll Revenue Bond will mature by May 2016 but may be fully repaid before then; and
(ii) Retail bonds and institutional notes totalling $19,950.0 million (including US$1.25 billion denominated in United States dollars). Of the outstanding retail bonds and institutional notes, $2,550 million will mature in July 2006 and the rest will mature within the period July 2008 to July 2019.
3. Includes guarantees provided under the Special Finance Scheme for Small and Medium Enterprises, the Self-employment Business Start-up Assistance Scheme, the SME Loan Guarantee Scheme, the Film Guarantee Fund and the Loan Guarantee Scheme for Severe Acute Respiratory Syndrome Impacted Industries.
TABLE 2. FISCAL RESERVES (PROVISIONAL)
Month ended Year ended
March 31, 2006 March 31, 2006
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HK$ million HK$ million
Fiscal Reserves at 308,012.2 295,981.3
start of period
Consolidated Surplus 1,926.3 13,957.2
Write-back of provision 717.6 717.6
for loss in investments
with the Exchange Fund
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Fiscal Reserves at 310,656.1 310,656.1
end of period ------------ -----------
Ends/Saturday, April 29, 2006
Issued at HKT 10:00
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