24th December 2024 – (Hong Kong) The Hong Kong government has published its accrual-based consolidated accounts for the financial year 2023-24, offering a comprehensive view of its financial performance and position. This release, dated 24th December, distinguishes between accrual-based and cash-based accounting methods, highlighting the broader information provided by the former.
A government spokesman explained that while cash-based accounts reflect actual revenue and expenditure within the fiscal year, accrual-based accounts aim to present a more detailed picture of the government’s financial health. The cash-based accounts consolidate the General Revenue Account and various funds, excluding the Bond Fund, while the accrual-based accounts include additional entities such as the Exchange Fund, the Hong Kong Housing Authority, and government business enterprises.
Key figures from the accrual-based accounts reveal a net deficit of HK$85.7 billion, in contrast to a cash-based deficit of HK$100.2 billion. This discrepancy is largely attributed to the inclusion of surpluses from the Exchange Fund and other funds. As of 31st March, 2024, the government’s net assets stood at HK$1,649.1 billion, supported by a General Reserve of HK$340.1 billion, an Exchange Fund Reserve of HK$669.5 billion, and a Capital Expenditure Reserve of HK$639.5 billion.
The spokesman further detailed that the General Reserve signifies the government’s net financial assets, while the Exchange Fund Reserve’s net assets are regulated under the Exchange Fund Ordinance. Notably, the Fiscal Reserves available for government spending were reported at HK$734.6 billion.
The release also outlined significant liabilities, including government bonds amounting to HK$445.6 billion and pension provisions totalling HK$967.6 billion. Additionally, outstanding commitments for capital works totalled HK$1,190.4 billion, alongside guarantees of HK$304.8 billion provided under various schemes.
