**********************************************************
The Government announced today (December 31) its financial results for the eight months ended November 30, 2008.
There was a surplus of $28.0 billion in November, thereby reducing the deficit for the eight months ended November 30 to $9.3 billion. Expenditure for the period amounted to $171.4 billion and revenue $162.1 billion.
A government spokesman said that the improved financial results in November were mainly due to the collection of profits tax. Nevertheless, having regard to the current financial position and economic outlook, it was expected that the deficit for the 2008-09 would be higher than the original estimate of $7.5 billion.
The fiscal reserves stood at $483.6 billion as at November 30.
More detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT
Month ended Eight months ended
November 30, 2008 November 30, 2008
----------------- ------------------
HK$ million HK$ million
Revenue 47,951.8 162,085.1
Expenditure (19,983.0) (171,420.9)
---------- -----------
Surplus/(Deficit) 27,968.8 (9,335.8)
---------- -----------
Financing
Domestic
Banking Sector (27,684.0) 8,606.3
(Note 1)
Non-Banking Sector (284.8) 729.5
External - -
-------- -----------
Total (27,968.8) 9,335.8
---------- -----------
Government Debts as at November 30, 2008 (Note 2)
HK$16,800.6 million
Debts Guaranteed by Government as at November 30, 2008 (Note 3)
HK$3,771.1 million
TABLE 2. FISCAL RESERVES
Month ended Eight months ended
November 30, 2008 November 30, 2008
----------------- ------------------
HK$ million HK$ million
Fiscal Reserves 455,609.9 492,914.5
at start of period
Consolidated 27,968.8 (9,335.8)
Surplus/(Deficit) --------- ----------
Fiscal Reserves 483,578.7 483,578.7
at end of period --------- ----------
Notes :
1. Includes transactions with the Exchange Fund and resident banks.
2. The total Government debts of $16,800.6 million as at November 30, 2008 comprise:
(i) Toll Revenue Bond of $2,112.6 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) Institutional notes of $14,688.0 million (including US$1.25 billion denominated in United States dollars). Of the outstanding amount, $3,500 million will mature in July 2009 and the rest will mature within the period August 2014 to July 2019.
3. Includes guarantees provided under the Special Finance Scheme for Small and Medium Enterprises launched in 1998, the SME Loan Guarantee Scheme launched in 2001 and the Film Guarantee Fund.
Ends/Wednesday, December 31, 2008
Issued at HKT 16:30
NNNN
