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Provisional financial results for the year ended March 31, 2015
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     The Government announced today (April 30) its provisional financial results for the year ended March 31, 2015.

     Expenditure for the year ended March 31, 2015 amounted to HK$396.2 billion and revenue HK$478.7 billion, resulting in a surplus of HK$72.8 billion after repayment of institutional notes of HK$9.7 billion.

     The overall fiscal position was more favourable than the original and revised estimates for the year, largely due to the extraordinary returns from profits tax, salaries tax, stamp duties, and land revenue.

     Expenditure for the year recorded a 3.6 per cent variance (HK$15 billion) against the original estimate. The underspending is within expected range.

     Revenue for the year recorded a 11.3 per cent variance (HK$48.6 billion) against the original estimate; this includes HK$8 billion between the revised estimate and the provisional actual. The variances are attributable largely to the following items:

    Provisional     Revised       Five-year range
      Actual        Estimate    (2010-11 to 2014-15)
    HK$ billion     HK$ billion      HK$ billion

Operating Revenue

Profits  137.8        136.1          93.2 - 137.8
Tax

Salaries  59.3         58.0          44.3 - 59.3
Tax

Stamp     74.8         73.5          41.5 - 74.8
Duties

Capital Revenue

Land      77.8         73.2          65.5 - 84.6
Premium       

     Profits tax, salaries tax and stamp duties each achieved a record high. Double stamp duty was not legislated for and could not be budgeted at the start of 2014-15. HK$22.4 billion of the stamp duty returns for 2014-15 related to this. For land premium, a lease modification for a residential development was concluded towards the end of 2014-15, earlier than anticipated.

     The fiscal reserves stood at HK$828.5 billion as at March 31, 2015.

     The spokesperson said that these were provisional figures pending the final closing of the annual accounts. According to past experience, any changes to the provisional figures would unlikely be significant. More detailed figures are shown in Tables 1 and 2.

     The spokesperson added that from 2010-11 to 2014-15, government expenditure has grown by 31.5 per cent (recurrent 36.7 per cent), outpacing the corresponding growth of the economy at 26.4 per cent. Government revenue grew by 27.1 per cent during the same period.

TABLE 1. CONSOLIDATED ACCOUNT (PROVISIONAL) (Note 1)

                  Month ended          Year ended
                 March 31, 2015      March 31, 2015
                ----------------    ----------------
                   HK$ million        HK$ million

Revenue (Note 2)    34,005.6          478,667.7
Expenditure        (39,221.3)        (396,183.3)
                  -------------   ------------------
(Deficit)/Surplus   (5,215.7)          82,484.4
before Repayment
of Bonds and Notes
Repayment of            -              (9,687.8)
Bonds and Notes
                  -------------   ------------------
(Deficit)/Surplus   (5,215.7)          72,796.6
after Repayment
of Bonds and Notes
                  -------------   ------------------
Financing
 Domestic
  Banking Sector      5,240.7         (71,573.3)
   (Note 3)
  Non-Banking Sector    (25.0)         (1,223.3)
 External                -                   -
                  -------------   ------------------
Total                 5,215.7         (72,796.6)
                  -------------   ------------------

Government Debts as at March 31, 2015 (Note 4)
  HK$1,500 million
Debts Guaranteed by Government as at March 31, 2015 (Note 5)
  HK$57,305 million

TABLE 2. FISCAL RESERVES (PROVISIONAL)

                  Month ended         Year ended
                 March 31, 2015      March 31, 2015
                ----------------    ----------------
                   HK$ million        HK$ million

Fiscal Reserves      833,729.0         755,716.7
at start of period

(Deficit)/Surplus     (5,215.7)          72,796.6
after Repayment
of Bonds and Notes
                  -------------   ------------------
Fiscal Reserves      828,513.3          828,513.3
at end of period
                  -------------   ------------------

Notes:

1. This Account consolidates the General Revenue Account and the following eight funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at March 31, 2015 was HK$120,058 million.

2. In accordance with a directive made by the Financial Secretary, the investment income in respect of the fiscal reserves for 2014 of HK$27,487 million was retained within the Exchange Fund, as provision for a Housing Reserve, and not paid on December 31, 2014.

3. Includes transactions with the Exchange Fund and resident banks.

4. These were the outstanding institutional notes as at March 31, 2015, which were denominated in Hong Kong dollars and will mature in July 2019. They do not include the outstanding bonds with nominal value of HK$104,400 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,755 million as at March 31, 2015) issued under the Government Bond Programme (with proceeds credited to the Bond Fund). Of these bonds under the Government Bond Programme, bonds with nominal value of HK$28,000 million will mature within the period from April 2015 to March 2016 and the rest within the period from April 2016 to August 2024.

5. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the Special Concessionary Measures under the SME Financing Guarantee Scheme launched in 2012, a commercial loan of the Ocean Park Corporation and a commercial loan of the Hong Kong Science and Technology Parks Corporation.

Ends/Thursday, April 30, 2015
Issued at HKT 16:30

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