ECONOMY | Staff Reporter, Hong Kong

Government records $232b fiscal deficit

Fiscal reserves, meanwhile, stood at $927.8b, as of 31 March.

The Hong Kong government has announced it incurred a total of $816b expenditure for the year ended 31 March 2021, whilst it generated some $564.2b revenue.

This resulted in a deficit worth $232.5b after the receipt of net proceeds of $19.3b from the issuance of green bonds, under the Government Green Bond Programme.

Expenditure for the year recorded a variance of 11.6% ($84.9b) higher than the original estimate, whilst revenue was 1.5% ($8.3b) lower than the original projection.

Moreover, the consolidated deficit for the year was $25.1b lower than the revised estimate of $257.6b. Revenue was $20.7b (3.8%) higher than expected, largely due to stamp duties, and earnings and profits tax, which were higher by $10b and $7b, respectively.

Expenditure was $4.4b (0.5%) lower than forecast for the revised estimate mainly due to lower-than-expected requirements.

Fiscal reserves, as of 31 March, amounted to $927.8b, which includes some $219.69b balance from the Land Fund held in the name of “Future Fund.”

A government spokesman noted the provisional figures are still pending final closing of annual accounts.

Further, government debt stood at $27.2b over the same period. These were the Green Bonds that included US1b and US$2.5b in May 2019 and February 2021, respectively.

Meanwhile, debts guaranteed by the government reached $82.5b, also comprised of the guarantees provided under the SME Loan Guarantee, the Special Loan Guarantee Scheme, the SME Financing Guarantee Scheme and a commercial loan of the Hong Kong Science and Technology Parks Corporation.

Do you know more about this story? Contact us anonymously through this link.

Click here to learn about advertising, content sponsorship, events & rountables, custom media solutions, whitepaper writing, sales leads or eDM opportunities with us.

To get a media kit and information on advertising or sponsoring click here.