The Government announced today (July 31) its financial results for the three months ended June 30, 2026.

     Expenditure and revenue from April to June 2026 amounted to HK$185.5 billion and HK$163.9 billion respectively, resulting in a surplus of HK$12.8 billion after taking into account HK$41.9 billion received from issuance of Government Bonds and repayment of HK$7.5 billion principal on Government Bonds. The fiscal reserves stood at HK$678.3 billion as at June 30, 2026.

     A Government spokesperson said that the surplus of HK$12.8 billion recorded for the period ended June 2026 was mainly due to the implementation of the 2026-27 Budget proposal to transfer HK$75 billion from the Exchange Fund to the Capital Works Reserve Fund in June 2026. In view that the transfer is a one-off arrangement, the aforesaid surplus will taper off subsequently. Based on past revenue collection pattern, major revenue items including salaries and profits taxes are mostly received towards the end of a financial year.

     Detailed figures are shown in Tables 1 and 2.
 
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
 

	Month ended June 30, 2026 HK$ million	Three months ended June 30, 2026 HK$ million
Revenue	103,044.5	163,918.3
Expenditure	(60,312.5)	(185,455.0)
Surplus/(Deficit) before issuance and repayment of Government Bonds	42,732.0	(21,536.7)
Proceeds received from issuance of Government Bonds	4,417.8	41,865.5
Repayment of Government Bonds*	(4,030.1)	(7,507.6)
Surplus after issuance and repayment of Government Bonds	43,119.7	12,821.2
Financing
Domestic
Banking Sector (Note 2)	(41,659.8)	(14,361.0)
Non-Banking Sector	(1,459.9)	1,539.8
External	-	-
Total	(43,119.7)	(12,821.2)
* Being repayment of principal on Government Bonds and does not include the associated interest and other expenses.

 
Government Debts as at June 30, 2026 (Note 3)
    HK$445,288 million
Debts Guaranteed by Government as at June 30, 2026 (Note 4)  
    HK$107,456 million
 
TABLE 2. FISCAL RESERVES
 

	Month ended June 30, 2026 HK$ million	Three months ended June 30, 2026 HK$ million
Fiscal Reserves at start of period	635,242.1	665,540.6
Consolidated Surplus after issuance and repayment of Government Bonds	43,119.7	12,821.2
Fiscal Reserves at end of period (Note 5)	678,361.8	678,361.8

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 June 30, 2026, was HK$153,030 million.
 
2. Includes transactions with the Exchange Fund and resident banks.
 
3. The Government Debts, with proceeds credited to the Capital Works Reserve Fund, comprise:
 
(i) the Green Bonds (equivalent to HK$190,142 million as at June 30, 2026) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$9,050 million with maturity from July 2027 to January 2053), euros (6,550 million euros with maturity from November 2026 to November 2041), Renminbi (RMB33,000 million with maturity from July 2026 to July 2054) and Hong Kong dollars (HK$22,500 million with maturity from October 2026 to November 2027);

(ii) the Infrastructure Bonds (equivalent to HK$146,566 million as at June 30, 2026) issued under the Infrastructure Bond Programme. They were denominated in US dollars (US$500 million with maturity in May 2031), Renminbi (RMB55,000 million with maturity from July 2026 to May 2056) and Hong Kong dollars (HK$79,230 million with maturity from August 2026 to May 2056); and

(iii) the Silver Bonds with nominal value of HK$108,580 million (with maturity in October 2027 and October 2028 and may be redeemed before maturity upon request from bond holders) issued under the Infrastructure Bond Programme.
 
     They do not include the outstanding bonds with nominal value of HK$100,338 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,841 million as at June 30, 2026) issued under the Government Bond Programme with proceeds credited to the Bond Fund. Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$53,238 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$69,838 million will mature within the period from July 2026 to June 2027, and the rest within the period from July 2027 to May 2042.
 
4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012, the Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade, the Loan Guarantee Scheme for Battery Electric Taxis and the Loan Guarantee Scheme for Travel Sector launched in 2023, and the commercial loan under Guaranteed Medium Term Note Programme of the Hong Kong Cyberport Management Company Limited.
 
5. Includes HK$249,839 million, being the balance of the Land Fund held in the name of Future Fund, for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.

Ends/Friday, July 31, 2026
Issued at HKT 16:30

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