Financial results for the five months ended August 31, 2012
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     The Government announced today (September 28) its financial results for the five months ended August 31, 2012.

     Expenditure for the period April to August 2012 amounted to HK$153.8 billion and revenue HK$117.8 billion, resulting in a deficit of HK$36 billion.

     A government spokesperson said that the deficit for the period was mainly because some major types of revenue including salaries and profits taxes were mostly received towards the end of a financial year.

     The fiscal reserves stood at HK$633.1 billion as at August 31, 2012.

     More detailed figures are shown in Tables 1 and 2.

TABLE 1.   CONSOLIDATED ACCOUNT (Note 1)

                   Month ended     Five months ended
                 August 31, 2012    August 31, 2012
                 ---------------   -----------------
                   HK$ million        HK$ million

Revenue             18,415.6           117,776.8
Expenditure        (32,851.5)         (153,811.0)
                 ---------------   -----------------
Deficit            (14,435.9)          (36,034.2)
                 ---------------   -----------------

Financing
 Domestic
  Banking Sector    14,854.4            36,084.0
   (Note 2)
  Non-Banking Sector  (418.5)             (49.8)
 External              -                   -
                 ---------------   -----------------
Total               14,435.9           36,034.2
                 ---------------   -----------------

Government Debts as at August 31, 2012 (Note 3)
  HK$11,195.6 million
Debts Guaranteed by Government as at August 31, 2012 (Note 4)
  HK$64,409.3 million

TABLE 2.   FISCAL RESERVES

                   Month ended     Five months ended
                 August 31, 2012    August 31, 2012
                 ---------------   -----------------
                   HK$ million        HK$ million

Fiscal Reserves    647,490.3           669,088.6
at start of period

Consolidated       (14,435.9)          (36,034.2)
Deficit          ---------------   -----------------

Fiscal Reserves    633,054.4           633,054.4
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 August 31, 2012, is HK$65,966 million.

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

3. These are the outstanding institutional notes (including US$1.25 billion denominated in United States dollars) as at August 31, 2012, which will mature within the period from August 2014 to July 2019. The outstanding bonds of HK$64,000 million issued under the Government Bond Programme (with proceeds credited to the Bond Fund) are excluded. Of these bonds, HK$3,500 million matured on September 3, 2012; HK$3,500 million will mature within the period from October 2012 to August 2013 and the rest within the period from September 2013 to August 2021.

4. Includes guarantees provided under the Special Finance Scheme for Small and Medium Enterprises launched in 1998, the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the Film Guarantee Fund and the commercial loan of the Ocean Park Corporation.

Ends/Friday, September 28, 2012
Issued at HKT 16:30

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