Accrual-based Consolidated Government Accounts for 2023-24
The Government published today (December 24) its accrual-based consolidated accounts for the financial year 2023-24.
A Government spokesman said that the accrual-based accounts differ from the cash-based ones in the purposes they serve. "Compiled on the basis of actual cash revenue and expenditure within a financial year, the cash-based accounts serve mainly to demonstrate that public money has been paid within the limits and ambits approved by the legislature. The accrual-based accounts, on the other hand, aim to present more information on the financial performance and position of the Government," he said.
"The cash-based accounts consolidate the General Revenue Account (GRA) and the Funds established under section 29 of the Public Finance Ordinance (Cap. 2) except the Bond Fund, the balance of which is not part of the Fiscal Reserves. In addition to the GRA and Funds consolidated in the cash-based accounts, the accrual-based accounts include the Exchange Fund, the Hong Kong Housing Authority (HKHA), government business enterprises such as the MTR Corporation Limited and the Kowloon-Canton Railway Corporation, and other government funds such as the Bond Fund and the Quality Education Fund. There are also more comprehensive disclosures of the Government's assets and liabilities in the accrual-based accounts, e.g. fixed assets, provision for pensions and government debts," he added.
The key figures shown in the accrual-based accounts as compared with those in the cash-based accounts are highlighted below:
2023-24 |
Cash-based
(HK$ billion) |
Accrual-based
(HK$ billion) |
------------- |
--------------- |
Financial results |
Fiscal deficit
(100.2) |
Net deficit
(85.7) |
Reserves |
Fiscal Reserves
734.6 |
General Reserve
340.1 |
Exchange Fund Reserve
669.5 |
Capital Expenditure Reserve
639.5 |
-------------- |
---------------- |
734.6 |
1,649.1 |
-------------- |
---------------- |
Net assets |
734.6 |
1,649.1 |
The accrual-based Consolidated Statement of Financial Performance reports a deficit of HK$85.7 billion, whereas the cash-based accounts show a deficit of HK$100.2 billion. This is mainly due to inclusion of the surpluses of the Exchange Fund, the HKHA and other funds.
According to the accrual-based Consolidated Statement of Financial Position, the Government's net assets were HK$1,649.1 billion as at March31,2024. These net assets were represented by three reserves: General Reserve of HK$340.1billion, Exchange Fund Reserve of HK$669.5 billion and Capital Expenditure Reserve of HK$639.5 billion. Notwithstanding these, the cash resources available for the Government's spending remain to be the Fiscal Reserves, which stood at HK$734.6 billion as at March 31, 2024.
"The General Reserve represents the net financial assets of the Government. The Exchange Fund Reserve refers to the net assets of the Exchange Fund, the use of which is governed by the Exchange Fund Ordinance (Cap. 66), whereas the Capital Expenditure Reserve represents the total net book value of fixed assets," the government spokesman added.
"The Government's General Reserve as at March31,2024, was HK$340.1billion, HK$394.5billion less than the Fiscal Reserves of HK$734.6billion reported in the cash-based accounts. The difference arises because the net financial assets of the Government in the accrual-based accounts take into account the Government's liabilities such as government bonds, pensions and untaken leave of staff, partly offset by financial assets such as investments in the MTR Corporation Limited and the Airport Authority.
"Totalling HK$445.6billion, the government bonds refer to the debt instruments issued under the Government Green Bond Programme and Government Bond Programme. The provision for pensions of HK$967.6 billion, in terms of present value, represents the statutory liabilities in relation to civil servants' pensions.
"Apart from the liabilities shown in the accrual-based Consolidated Statement of Financial Position, there are also outstanding commitments, largely for capital works, of HK$1,190.4billion and guarantees of HK$304.8billion provided under various schemes," the Government spokesman said.
The public can access the accrual-based and cash-based accounts at the Treasury's website: www.try.gov.hk.
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges
The "Immersive Hong Kong" roving exhibition is now being held in Dubai, the United Arab Emirates (UAE), by the Information Services Department (ISD) of the Hong Kong Special Administrative Region Government (HKSARG) in collaboration with the Hong Kong Economic and Trade Office in Dubai (Dubai ETO) to promote business and cultural relations and exchanges between the two places.
"Since the establishment of the Dubai ETO in 2021, we have witnessed ever closer ties between Hong Kong and the Middle East, with the Chief Executive and various Principal Officials from the HKSARG having visited the Middle East to strengthen bilateral ties and explore opportunities for collaboration on all fronts. We will continue to engage stakeholders in the Gulf Cooperation Council for deepening relations and telling the good stories of Hong Kong in the region," said the Director-General of the Dubai ETO, Mr Damian Lee.
"In this regard, we have brought the 'Immersive Hong Kong' exhibition to Dubai to introduce to the cosmopolitan population here the wonderful and exciting facets of Hong Kong," he added.
The Minister of State for Foreign Trade of the UAE, His Excellency Dr Thani bin Ahmed Al Zeyoudi, who visited the exhibition today (December 24) at the invitation of the Dubai ETO, said the exhibition provides an important platform for the people of the UAE to explore the potential of Hong Kong across tourism, business and investment sectors.
Highlighting the city's distinctive role as a gateway to Mainland China, he emphasised that strengthening investment and trade partnerships with Hong Kong plays a key role in supporting broader strategic co-operation between the UAE and China, whilst helping to unlock new business opportunities between the Emirati-Chinese business communities.
The Consul General of the UAE in Hong Kong, His Excellency Shaikh Saoud Ali M. A. Almualla, who earlier visited the exhibition, also noted the huge potential for closer bilateral ties.
"There are many similarities between the UAE and Hong Kong, such as economic ambition, cultural inclusivity, and a vision of continued growth and global collaboration. Both places offer a thriving environment for business and personal development, making them ideal partners in fostering deeper trade and investment ties across regions," he said.
Themed "Hong Kong - Where the World Looks Ahead", the "Immersive Hong Kong" roving exhibition is part of the ISD's external promotional campaign to showcase the city's new attractions, advantages and opportunities. It is now on display at The Beach, Jumeirah Beach Residence, until January 5, 2025. Admission is free.
More information on the exhibition is available on the dedicated page of the Brand Hong Kong website (www.brandhk.gov.hk/en/campaign/hkpromotion-middle-east) as well as the website of the Dubai ETO (www.hketodubai.gov.hk/en/index.html).
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges Source: HKSAR Government Press Releases
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges Source: HKSAR Government Press Releases
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges Source: HKSAR Government Press Releases
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges Source: HKSAR Government Press Releases
"Immersive Hong Kong" roving exhibition in Dubai fostering mutual relations and exchanges Source: HKSAR Government Press Releases
