Provisional financial results for the year ended March 31, 2008

    The Government announced today (April 30) its provisional financial results for the year ended March 31, 2008.

    Expenditure for the year ended March 31, 2008, amounted to $234.8 billion and revenue $358.4 billion, resulting in a surplus of $123.6 billion.

    A government spokesman said that the surplus of $123.6 billion represented an improvement of $8 billion over the $115.6 billion surplus forecast in the 2008-09 Budget.  He said the improved financial position was mainly due to the higher than expected collection of profits tax and stamp duties towards the end of the financial year.  Revenue for the year was $5.5 billion higher than forecast.

    At the same time, expenditure for the year was $2.5 billion lower than forecast mainly as a result of the strenuous efforts of departments to rein in expenditure and spend only where necessary.

    The fiscal reserves stood at $492.9 billion as at March 31, 2008, an increase of $123.6 billion compared with the balance of $369.3 billion as at March 31, 2007.

    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.


                    Month ended        Year ended
                    March 31,2008      March 31,2008
                    HK$ million        HK$ million

Revenue            23,868.4          358,445.3
Expenditure        (23,677.3)        (234,790.9)
                  ----------        -----------
Surplus              191.1          123,654.4
                  ----------        -----------

Banking Sector (Note 1)(321.0)      (124,748.3)
Non-Banking Sector      129.9          1,093.9
External                  -                -
                    ----------      ------------
Total                  (191.1)      (123,654.4)

Government Debts as at March 31, 2008
(Note 2)
HK$20,064.4 million
Debts Guaranteed by Government as at March 31, 2008
(Note 3)
HK$4,094.8 million


                      Month ended    Year ended
                      March 31,2008  March 31,2008
                      HK$ million    HK$ million

Fiscal Reserves at      492,727.5      369,264.2
start of period 
Add : Consolidated Surplus  191.1      123,654.4
                        ----------      ----------
Fiscal Reserves at      492,918.6        492,918.6
end of period 

Notes :

1. Includes transactions with the Exchange Fund and resident banks.
2. The total government debts of $20,064.4 million as at March 31, 2008, comprise :

(i) Toll Revenue Bond of $2,637.6 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) Retail bonds and institutional notes totalling $17,426.8 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 $14,726.8 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, April 30, 2008
Issued at HKT 16:16