**********************************************************
The Government announced today (July 31) its financial results for the three months ended June 30, 2006.
Expenditure for the period April to June 2006, amounted to $54.8 billion and revenue $48.8 billion, resulting in a deficit of $6 billion.
A government spokesman said that a deficit in the initial months of a financial year was not unusual as many types of revenue including taxes were mostly received towards the end of the year.
The fiscal reserves stood at $304.7 billion as at June 30, 2006.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Month ended Three months ended
June 30, 2006 June 30, 2006
------------- ------------------
HK$ million HK$ million
Revenue 9,616.3 48,827.9
Expenditure (Note 1)(17,106.7) (54,801.0)
---------- -----------
Deficit (7,490.4) (5,973.1)
---------- -----------
Financing
Domestic
Banking Sector (Note 2) 6,743.3 3,968.9
Non-Banking Sector 747.1 2,004.2
External - -
--------- --------
Total 7,490.4 5,973.1
--------- --------
Government Debts as at June 30, 2006 (Note 3)
HK$24,482.0 million
Debts Guaranteed by Government as at June 30, 2006 (Note 4)
HK$5,287.3 million
TABLE 2. FISCAL RESERVES
Month ended Three months ended
June 30, 2006 June 30, 2006
------------- ------------------
HK$ million HK$ million
Fiscal Reserves
at start of
period (Note 1) 312,179.9 310,662.6
Less: Consolidated
Deficit (7,490.4) (5,973.1)
----------- ------------
Fiscal Reserves at
end of period 304,689.5 304,689.5
------------ ------------
Notes:
1. The fiscal reserves and cumulative expenditure for the three months ended June 30, 2006 have taken into account adjustments made to the annual accounts for the year 2005-06 and the accounts for the month of April 2006.
2. Includes transactions with the Exchange Fund and resident banks.
3. The total government debts of $24,482 million as at June 30, 2006 comprise :
(i) Toll Revenue Bond of $4,522.7 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, $880 million will mature in May 2007 and the rest will mature by May 2016 but may be fully repaid before then; and
(ii) Retail bonds and institutional notes totalling $19,959.3 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.
4. 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.
Ends/Monday, July 31, 2006
Issued at HKT 16:16
NNNN
