Hong Kong fiscal deficit jumps 200% to $21.6b

The government reported a massive deficit for first the four months of the financial year 2012/13.

Hong Kong posted a HK$21.6 billion fiscal deficit for the April to July period as against a HK$7.1 billion deficit for the same period last year, a huge increase of 204%.

According to the Financial Services & the Treasury Bureau, government expenditures for this period amounted to HK$121 billion while revenues came to HK$99.4 billion.

A government spokesman said the deficit was mainly because some major types of revenue (including salaries and taxes on corporate profits) were received towards the end of this financial year in March.

Fiscal reserves stood at HK$647.5 billion at July 31.