Government's financial results for four months ended July 31, 2026
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Expenditure and revenue from April to July 2026 amounted to HK$249.7 billion and HK$193.6 billion respectively, resulting in a deficit of HK$19.6 billion after taking into account HK$48.2 billion received from issuance of Government Bonds and repayment of HK$11.7 billion principal on Government Bonds. The fiscal reserves stood at HK$645.9 billion as at July 31, 2026.
A Government spokesperson said that the deficit for the period was mainly due to the fact that major revenue items including salaries and profits taxes are mostly received towards the end of a financial year.
Detailed figures are shown in Tables 1 and 2.
TABLE 1. CONSOLIDATED ACCOUNT (Note 1)
| Month ended July 31, 2026 HK$ million |
Four months ended July 31, 2026 HK$ million |
|
| Revenue | 29,705.2 | 193,623.5 |
| Expenditure | (64,222.0) | (249,677.0) |
| Deficit before issuance and repayment of Government Bonds |
(34,516.8) | (56,053.5) |
| Proceeds received from issuance of Government Bonds |
6,281.1 | 48,146.6 |
| Repayment of Government Bonds* |
(4,173.3) | (11,680.9) |
| Deficit after issuance and repayment of Government Bonds |
(32,409.0) | (19,587.8) |
| Financing | ||
| Domestic | ||
| Banking Sector (Note 2) | 32,527.9 | 18,166.9 |
| Non-Banking Sector | (118.9) | 1,420.9 |
| External | - | - |
| Total | 32,409.0 | 19,587.8 |
| * Being repayment of principal on Government Bonds and does not include the associated interest and other expenses. | ||
Government Debts as at July 31, 2026 (Note 3)
HK$448,704 million
Debts Guaranteed by Government as at July 31, 2026 (Note 4)
HK$106,357 million
TABLE 2. FISCAL RESERVES
| Month ended July 31, 2026 HK$ million |
Four months ended July 31, 2026 HK$ million |
|
| Fiscal Reserves at start of period | 678,361.8 | 665,540.6 |
| Consolidated Deficit after issuance and repayment of Government Bonds |
(32,409.0) | (19,587.8) |
| Fiscal Reserves at end of period (Note 5) |
645,952.8 | 645,952.8 |
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 July 31, 2026, was HK$152,842 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$188,691 million as at July 31, 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 (RMB31,000 million with maturity from November 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$151,555 million as at July 31, 2026) issued under the Infrastructure Bond Programme. They were denominated in US dollars (US$500 million with maturity in May 2031), Renminbi (RMB56,500 million with maturity from November 2026 to May 2056) and Hong Kong dollars (HK$81,980 million with maturity from August 2026 to May 2056); and
(iii) the Silver Bonds with nominal value of HK$108,458 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$100,289 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,843 million as at July 31, 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$53,189 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$53,189 million were repaid upon maturity on August 18, 2026; bonds with nominal value of HK$16,600 million will mature within the period from September 2026 to July 2027, and the rest within the period from August 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 the Guaranteed Medium Term Note Programme of the Hong Kong Cyberport Management Company Limited.
5. Includes HK$249,845 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/Monday, August 31, 2026
Issued at HKT 16:30
Issued at HKT 16:30
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