HK government logs $19.6 billion deficit in April to July period

The government recorded a deficit of HK$19.6 billion in the first four months of the fiscal year, as major revenue items, including salaries and profits taxes, are mostly received late in the financial year.

The deficit was calculated after taking into account HK$48.2 billion received from the issuance of government bonds and repayment of HK$11.7 billion of its principal.

Expenditure and revenues in the period amounted to HK$249.7 billion and HK$193.6 billion respectively, while fiscal reserves stood at HK$645.9 billion.

Separately, the Hong Kong Monetary Authority announced yesterday that as of July this year, the total assets of the exchange fund came to HK$4.4 trillion, which was HK$59.9 billion lower than that at the end of June 2026. 

Hong Kong dollar assets decreased by HK$77.2 billion while foreign currency assets increased by HK$17.3 billion.

HKMA said the decline in Hong Kong dollar assets was mainly due to unsettled exchange fund bills and notes at month-end, partly offset by equity revaluation gains. Foreign currency assets rose on higher swap and interest income, partly offset by investment revaluation losses.

Meanwhile, HKMA’s statistics showed that total deposits with authorized institutions edged up 0.9 percent in July, while total deposits and Hong Kong dollar deposits increased 5.8 percent and 6.2 percent at end-July, respectively.

Total loans and advances increased by 0.2 percent in July, and increased by 6.6 percent in the year to end-July.
 

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