The Government deficit climbed higher in the April-to-July period, as revenue fell and debt rose, mostly due to the SARS outbreak.

Government expenditure for the April-to-July period amounted to $79.6 billion while revenues reached just $34.9 billion, resulting in a deficit of $44.7 billion.

Revenue for the month of July was $4.75 billion, while the expenditure was $20.55 billion, resulting in a deficit of $15.8 billion.

A deficit in the initial months of a financial year is not unusual as many major types of revenue, including taxes, were mostly received towards the end of a financial year.

Government debt stood at $24.32 billion by July 31, 2003. This included the guarantees provided under the Special Finance Scheme for Small and Medium Enterprises, the Self-employment Business Start-up Assistance Scheme, the SME Loan Guarantee Scheme and the Loan Guarantee Scheme for Severe Acute Respiratory Syndrome Impacted Industries.

The fiscal reserves stood at $270.8 billion at July 31, 2003, down from $286.6 billion at June 30.