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The Government announced today (October 31) its financial results for the six months ended September 30, 2007.
Expenditure for the period April to September 2007 amounted to $112.7 billion and revenue $107.1 billion, resulting in a deficit of $5.6 billion.
A government spokesman explained that a deficit recorded for the half year ended September 30, 2007 was not unusual as some major revenue items including salaries and profits taxes were mostly received towards the end of a financial year. Given the better-than- expected revenue from stamp duties and land premium, we expect that the overall financial results for 2007-08 will be better than the original estimate of a consolidated surplus of $25.4 billion.
The fiscal reserves stood at $363.7 billion as at September 30, 2007.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Month ended Six months ended
September 30, 2007 September 30, 2007
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HK$ million HK$ million
Revenue 11,241.1 107,059.8
Expenditure (18,046.5) (112,673.0)
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Deficit (6,805.4) (5,613.2)
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Financing
Domestic
Banking Sector (Note 1) 7,133.8 3,282.7
Non-Banking Sector (328.4) 2,330.5
External - -
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Total 6,805.4 5,613.2
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Government Debts as at September 30, 2007 (Note 2)
HK$20,406.6 million
Debts Guaranteed by Government as at September 30, 2007 (Note 3)
HK$4,627.2 million
TABLE 2. FISCAL RESERVES
Month ended Six months ended
September 30, 2007 September 30, 2007
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HK$ million HK$ million
Fiscal Reserves at
start of period 370,456.4 369,264.2
Add: Consolidated
Deficit (6,805.4) (5,613.2)
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Fiscal Reserves at
end of period 363,651.0 363,651.0
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Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The total government debts of $20,406.6 million as at September 30, 2007 comprise :
(i) Toll Revenue Bond of $3,003.1 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 $17,403.5 million (including US$1.25 billion denominated in United States dollars). Of the outstanding amount, the retail bonds of $2,700 million will mature in July 2008 and the institutional notes totalling $14,703.5 million will mature within the period July 2009 to July 2019.
3. Includes guarantees provided under the Special Finance Scheme for Small and Medium Enterprises, the SME Loan Guarantee Scheme, the Film Guarantee Fund and the Loan Guarantee Scheme for Severe Acute Respiratory Syndrome Impacted Industries.
Ends/Wednesday, October 31, 2007
Issued at HKT 16:16
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