Financial results for the five months ended August 31, 2010
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     The Government announced today (September 30) its financial results for the five months ended August 31, 2010.

     Expenditure for the period April to August 2010 amounted to $123.2 billion and revenue $109.7 billion, resulting in a deficit of $13.5 billion.

     A government spokesman 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 $506.8 billion as at August 31, 2010.

     More detailed figures are shown in Tables 1 and 2.

TABLE 1.   CONSOLIDATED ACCOUNT (Note 1)

                  Month ended      Five months ended
                August 31, 2010     August 31, 2010
                ---------------    -----------------
                   HK$ million         HK$ million

Revenue             20,255.2             109,763.7
Expenditure        (24,203.5)           (123,241.4)
                ---------------    -----------------
Deficit             (3,948.3)            (13,477.7)
                ---------------    -----------------

Financing
 Domestic
  Banking Sector     3,862.0              12,950.9
   (Note 2)
  Non-Banking Sector    86.3                 526.8
 External               -                   -
                ---------------    -----------------
Total                3,948.3              13,477.7
                ---------------    -----------------

Government Debts as at August 31, 2010 (Note 3)
  HK$11,226.6 million
Debts Guaranteed by Government as at August 31, 2010 (Note 4)
  HK$65,009.6 million

TABLE 2.   FISCAL RESERVES

                  Month ended      Five months ended
                August 31, 2010     August 31, 2010
                ---------------    -----------------
                   HK$ million         HK$ million

Fiscal Reserves     510,752.0           520,281.4
at start of period

Consolidated Deficit (3,948.3)          (13,477.7)
                ---------------    -----------------

Fiscal Reserves     506,803.7           506,803.7
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, 2010 is $16,035.1 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, 2010, which will mature within the period August 2014 to July 2019.  Bonds of $16,000 million issued under the Government Bond Programme (with proceeds credited to the Bond Fund) are excluded.  These bonds will mature within the period September 2011 to January 2020.

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 commercial loan of the Ocean Park Corporation.

Ends/Thursday, September 30, 2010
Issued at HKT 16:35

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