The accrual-based consolidated accounts for the financial year 2005-06 have reported a surplus of $47.6 billion, $33.6 billion more than the cash-based surplus of $14 billion.

The Financial Services & the Treasury Bureau said the difference is mainly due to inclusion of the surplus of the Exchange Fund and government business enterprises, as well as the one-off gain on the divestment of the Housing Authority's retail and carparking facilities, partly offset by the provision for expenses, such as pensions, in arriving at the accrual-based surplus.

According to the accrual-based Consolidated Statement of Financial Position, the Government's net assets were $910.7 billion as at March 31, 2006. These net assets were represented by three reserves: the General Reserve of $185.5 billion, Exchange Fund Reserve of $453.9 billion and Capital Expenditure Reserve of $271.3 billion.

The Government's General Reserve was $185.5 billion, $125.2 billion less than the Fiscal Reserves of $310.7 billion reported in the cash-based accounts.

The difference arises because the Government's net financial assets in the accrual-based accounts take into account its liabilities such as government bonds and notes, pensions and untaken staff leave, offset partly by financial assets such as investments in the MTR Corporation Limited and the Airport Authority.

The cash resources available for the Government's spending are the Fiscal Reserves, which stood at $310.7 billion as at March 31.