Government Reports HK$67.6 Billion Deficit for April to August 2025 Fiscal Period

Government's financial results for five months ended August 31, 2025

The Government announced today (September 30) its financial results for the five months ended August 31, 2025.

Expenditure and revenue from April to August 2025 amounted to HK$311 billion and HK$208.6 billion respectively, resulting in a deficit of HK$67.6 billion after taking into account HK$61.6 billion received from the issuance of Government Bonds and repayment of HK$26.8 billion principal on Government Bonds.

A Government spokesperson said that the deficit for the period was mainly due to the fact that some major types of revenue including salaries and profits taxes are mostly received towards the end of a financial year.

The fiscal reserves stood at HK$586.7 billion as at August 31, 2025.

Detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT (Note 1)

Month ended

August 31, 2025

HK$ million

Five months ended

August 31, 2025

HK$ million

Revenue

96,328.5

208,593.2

Expenditure

(57,348.5)

(310,996.8)

Surplus / (Deficit) before issuance

and repayment of

Government Bonds

38,980.0

(102,403.6)

Proceeds received from

issuance of

Government Bonds

9,373.6

61,555.8

Repayment of

Government Bonds*

(37.4)

(26,757.5)

Surplus / (Deficit) after issuance

and repayment of

Government Bonds

48,316.2

(67,605.3)

Financing

Domestic

Banking Sector (Note 2)

(48,472.4)

64,485.3

Non-Banking Sector

156.2

3,120.0

External

-

-

Total

(48,316.2)

67,605.3

* Being repayment of principal on Government Bonds and does not include the associated interest and other expenses.

Government Debts as at August 31, 2025 (Note 3)

HK$338,506 million

Debts Guaranteed by Government as at August 31, 2025 (Note 4)

HK$118,066 million

TABLE 2. FISCAL RESERVES

Month ended

August 31, 2025

HK$ million

Five months ended

August 31, 2025

HK$ million

Fiscal Reserves at start of period

538,395.3

654,316.8

Consolidated Surplus / (Deficit) after

issuance and repayment of

Government Bonds

48,316.2

(67,605.3)

Fiscal Reserves at end of period

(Note 5)

586,711.5

586,711.5

Notes:

1. This Account consolidates the General Revenue Account and the following eight Funds: Capital Works Reserve Fund, Capital Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief Fund, Innovation and Technology Fund, Land Fund, Loan Fund and Lotteries Fund. It excludes the Bond Fund, the balance of which is not part of the fiscal reserves. The Bond Fund balance as at August 31, 2025, was HK$213,245 million.

2. Includes transactions with the Exchange Fund and resident banks.

3. The Government Debts, with proceeds credited to the Capital Works Reserve Fund, comprise:

(i) the Green Bonds (equivalent to HK$193,260 million as at August 31, 2025) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$10,950 million with maturity from January 2026 to January 2053), euros (5,580 million euros with maturity from February 2026 to November 2041), Renminbi (RMB32,000 million with maturity from February 2026 to July 2054) and Hong Kong dollars (HK$22,000 million with maturity from February 2026 to October 2026);

(ii) the Infrastructure Bonds (equivalent to HK$90,693 million as at August 31, 2025) issued under the Infrastructure Bond Programme. They were denominated in Renminbi (RMB31,250 million with maturity from December 2025 to June 2055) and Hong Kong dollars (HK$56,480 million with maturity from November 2025 to June 2055); and

(iii) the Silver Bonds with nominal value of HK$54,553 million (with maturity in October 2027 and may be redeemed before maturity upon request from bond holders) issued under the Infrastructure Bond Programme.

They do not include the outstanding bonds with nominal value of HK$166,340 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,798 million as at August 31, 2025) issued under the Government Bond Programme with proceeds credited to the Bond Fund. Of these bonds under the Government Bond Programme (including Silver Bonds with nominal value of HK$95,840 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$41,957 million were repaid upon maturity on September 15, 2025; bonds with nominal value of HK$77,284 million will mature within the period from October 2025 to August 2026, and the rest within the period from September 2026 to May 2042.

4. Includes guarantees provided under the SME Loan Guarantee Scheme launched in 2001, the Special Loan Guarantee Scheme launched in 2008, the SME Financing Guarantee Scheme launched in 2012, and the Loan Guarantee Scheme for Cross-boundary Passenger Transport Trade, the Loan Guarantee Scheme for Battery Electric Taxis and the Loan Guarantee Scheme for Travel Sector launched in 2023.

5. Includes HK$249,957 million, being the balance of the Land Fund held in the name of "Future Fund", for long-term investments up to December 31, 2030. The Future Fund also includes HK$4,800 million, being one-third of the actual surplus in 2015-16 as top-up.

Source: AI-found images

Seven persons arrested during anti-illegal worker operation

The Immigration Department (ImmD) mounted an anti-illegal worker operation codenamed "Contribute" today (January 15).During the operation, ImmD Task Force officers raided premises under renovation in a newly built public housing estate in Sheung Shui district.A total of six suspected illegal workers and one suspected employer were arrested. Thearrested suspected illegal workers comprise six men, aged 22 to 41. Furthermore, one man, aged 45, suspected of employing the illegal workers, was also arrested. An investigation into the suspected employers is ongoing, and the possibility of further arrests is not ruled out.

Apart from mounting the enforcement operation, ImmD officers and a promotional vehicle have been deployed to distribute "Don't Employ Illegal Workers" leaflets and convey the message in the estate.

An ImmD spokesman said, "Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years' imprisonment. Aiders and abettors are also liable to prosecution and penalties."

The spokesman stressed that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years' imprisonment to a fine of $500,000 and 10 years' imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.

According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee's identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker's valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.

Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) and/or forced labour victims. When any TIP and/or forced labour indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP and/or forced labour elements. Identified TIP and/or forced labour victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP and/or forced labour victims to report crimes to the relevant departments immediately.

For reporting illegal employment activities, please call the dedicated hotline 3861 5000, by fax at 2824 1166, email to anti_crime@immd.gov.hk, or submit "Online Reporting of Immigration Offences" form at www.immd.gov.hk.

Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases

Seven persons arrested during anti-illegal worker operation Source: HKSAR Government Press Releases