Government spending for April to September amounted to $112.7 billion with revenue of $107.1 billion, resulting in a deficit of $5.6 billion, the Financial Services & the Treasury Bureau says.

The bureau said a deficit for the half year ending September 30 was not suprising as major revenue items like salaries and profits taxes are mostly received towards the end of a financial year.

Given the better-than-expected revenue from stamp duties and land premiums, it expects the overall financial results for 2007-08 will be better than the original estimate of a consolidated surplus of $25.4 billion.

Fiscal reserves stood at $363.7 billion as at September 30.