Government reports HK$18 billion deficit for eight months ending November 2025, fiscal reserves at HK$636.3 billion

Government's financial results for eight months ended November 30, 2025

The Government announced today (December 31) its financial results for the eight months ended November 30, 2025.

Expenditure and revenue from April to November 2025 amounted to HK$496.6 billion and HK$371.9 billion respectively, resulting in a deficit of HK$18 billion after taking into account HK$135.2 billion received from issuance of Government Bonds and repayment of HK$28.5 billion principal on Government Bonds.

A Government spokesperson said that the deficit for the period ended November 2025 was lower than that ended October 2025, 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 revised estimates for the current financial year will be published along with the 2026-27 Budget.

The fiscal reserves stood at HK$636.3 billion as at November 30, 2025.

Detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT (Note 1)

Month ended

November 30, 2025

HK$ million

Eight months ended

November 30, 2025

HK$ million

Revenue

79,423.6

371,887.3

Expenditure

(57,695.4)

(496,610.4)

Surplus/(Deficit) before issuance

and repayment of

Government Bonds

21,728.2

(124,723.1)

Proceeds received from issuance of Government Bonds

18,614.0

135,169.8

Repayment of

Government Bonds*

(1,590.5)

(28,465.5)

Surplus/(Deficit) after issuance

and repayment of

Government Bonds

38,751.7

(18,018.8)

Financing

Domestic

Banking Sector (Note 2)

(38,533.5)

14,680.8

Non-Banking Sector

(218.2)

3,338.0

External

-

-

Total

(38,751.7)

18,018.8

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

Government Debts as at November 30, 2025 (Note 3)

HK$410,245 million

Debts Guaranteed by Government as at November 30, 2025 (Note 4)

HK$115,251 million

TABLE 2. FISCAL RESERVES

Month ended

November 30, 2025

HK$ million

Eight months ended

November 30, 2025

HK$ million

Fiscal Reserves at start of period

597,546.3

654,316.8

Consolidated Surplus/(Deficit) after issuance and repayment of Government Bonds

38,751.7

(18,018.8)

Fiscal Reserves at end of period

(Note 5)

636,298.0

636,298.0

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 November 30, 2025, was HK$170,055 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$203,190 million as at November 30, 2025) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$11,250 million with maturity from January 2026 to January 2053), euros (5,880 million euros with maturity from February 2026 to November 2041), Renminbi (RMB34,500 million with maturity from February 2026 to July 2054) and Hong Kong dollars (HK$24,500 million with maturity from February 2026 to November 2027);

(ii) the Infrastructure Bonds (equivalent to HK$97,710 million as at November 30, 2025) issued under the Infrastructure Bond Programme. They were denominated in Renminbi (RMB34,500 million with maturity from December 2025 to June 2055) and Hong Kong dollars (HK$59,730 million with maturity from February 2026 to June 2055); and

(iii) the Silver Bonds with nominal value of HK$109,345 million (with maturity in October 2027 and October 2028 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$124,194 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,786 million as at November 30, 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$53,694 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$77,094 million will mature within the period from December 2025 to November 2026, and the rest within the period from December 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, 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, and the commercial loan under Guaranteed Medium Term Note Programme of the Hong Kong Cyberport Management Company Limited.

5. Includes HK$249,817 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.

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Hong Kong Customs seizes suspected smuggled goods worth about $7 million

Hong Kong Customs detected a suspected smuggling case involving an ocean-going vessel on December 23. A batch of suspected smuggled goods with a total estimated market value of about $7 million was seized.

Through intelligence analysis and risk assessment, Customs discovered that criminals intended to use ocean-going vessels to smuggle goods. Enforcement operations were thus formulated, with a suspicious container scheduled to depart from Hong Kong to Malaysia via an ocean-going vessel being selected for inspection.

Customs inspected the abovementioned container that was declared as carrying metals, server boards, printed circuit boards, hard drives, wires, etc, on December 23. Upon examination, Customs officers found a batch of suspected smuggled goods, including integrated circuits, resistors and heat sinks, in the container.

An investigation is ongoing. The likelihood of arrests is not ruled out.

Being a government department primarily responsible for tackling smuggling activities, Customs has long been combating various smuggling activities on all fronts. Customs will keep up its enforcement action and continue to resolutely combat sea smuggling activities through proactive risk management and intelligence-based enforcement strategies, and carry out targeted anti-smuggling operations at suitable times to disrupt relevant crimes.

Smuggling is a serious offence. Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years upon conviction.

Members of the public may report any suspected smuggling activities to Customs' 24-hour hotline 182 8080 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

Hong Kong Customs seizes suspected smuggled goods worth about $7 million Source: HKSAR Government Press Releases

Hong Kong Customs seizes suspected smuggled goods worth about $7 million Source: HKSAR Government Press Releases