Government Reports HK$62.6 Billion Surplus for 11 Months Ending February 2026

Government's financial results for 11 months ended February 28, 2026

The Government announced today (March 31) its financial results for the 11 months ended February 28, 2026.

Expenditure and revenue from April 2025 to February 2026 amounted to HK$691.5billion and HK$654.8 billion respectively, resulting in a surplus of HK$62.6billion after taking into account HK$148.9 billion received from issuance of Government Bonds and repayment of HK$49.6 billion principal on Government Bonds. The fiscal reserves stood at HK$716.9 billion as at February 28, 2026.

According to the 2026-27 Budget announced in end-February 2026, the revised estimate for the current financial year will record a surplus of HK$2.9 billion and the fiscal reserves are estimated to be HK$657.2 billion as at the end of March 2026.

Detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT (Note 1)

Month ended

February 28, 2026

HK$ million

11 months ended

February 28, 2026

HK$ million

Revenue

39,879.2

654,744.5

Expenditure

(64,227.3)

(691,482.6)

Deficit before issuance

and repayment of

Government Bonds

(24,348.1)

(36,738.1)

Proceeds received from

issuance of

Government Bonds

6,580.8

148,891.7

Repayment of

Government Bonds*

(7,577.5)

(49,591.2)

(Deficit)/Surplus after issuance

and repayment of

Government Bonds

(25,344.8)

62,562.4

Financing

Domestic

Banking Sector (Note 2)

25,639.2

(64,790.0)

Non-Banking Sector

(294.4)

2,227.6

External

-

-

Total

25,344.8

(62,562.4)

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

Government Debts as at February 28, 2026 (Note 3)

HK$407,176 million

Debts Guaranteed by Government as at February 28, 2026 (Note 4)

HK$111,597 million

TABLE 2. FISCAL RESERVES

Month ended

February 28, 2026

HK$ million

11 months ended

February 28, 2026

HK$ million

Fiscal Reserves at start of period

742,224.0

654,316.8

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

(25,344.8)

62,562.4

Fiscal Reserves at end of period

(Note 5)

716,879.2

716,879.2

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 February 28, 2026, was HK$153,602 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$188,486 million as at February 28, 2026) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$9,550 million with maturity from June 2026 to January 2053), euros (5,800 million euros with maturity from November 2026 to November 2041), Renminbi (RMB33,000 million with maturity from July 2026 to July 2054) and Hong Kong dollars (HK$22,500 million with maturity from October 2026 to November 2027);

(ii) the Infrastructure Bonds (equivalent to HK$109,640 million as at February 28, 2026) issued under the Infrastructure Bond Programme. They were denominated in Renminbi (RMB38,500 million with maturity from March 2026 to June 2055) and Hong Kong dollars (HK$65,730 million with maturity from May 2026 to June 2055); and

(iii) the Silver Bonds with nominal value of HK$109,050 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$100,615 million and alternative bonds with nominal value of US$1,000 million (equivalent to HK$7,823 million as at February 28, 2026) 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$53,515 million, which may be redeemed before maturity upon request from bond holders), bonds with nominal value of HK$53,515 million will mature within the period from March 2026 to February 2027, and the rest within the period from March 2027 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$250,029 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

Exchange Fund Abridged Balance Sheet and Currency Board Account

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA) announced today (March 31) that the total assets of the Exchange Fund amounted to HK$4,293.5billion as at February 28, 2026, HK$7.9 billion higher than that at the end of January 2026. Foreign currency assets increased by HK$47.4 billion while Hong Kong dollar assets decreased by HK$39.5 billion.

The rise in foreign currency assets was mainly due to interest income and mark-to-market revaluation of investments, and issuance of Certificates of Indebtedness. The decline in Hong Kong dollar assets was mainly due to a decrease in placements with banks.

The Currency Board Account shows that the Monetary Base at the end of February 2026 was HK$2,071.5 billion, grew by HK$12.8 billion, or 0.6 per cent, from the end of January 2026. The growth was mainly due to the increase in the outstanding amount of Certificates of Indebtedness and the amortisation of discount on Exchange Fund Bills and Notes issued.

The amount of Backing Assets increased by HK$26.1 billion, or 1.1 per cent, to HK$2,306.0 billion at the end of February 2026. The increase was mainly attributable to the issuance of Certificates of Indebtedness, mark-to-market revaluation of investments and interest income from investments. The Backing Ratio increased from 110.74 per cent at the end of January 2026 to 111.32 per cent at the end of February 2026.

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At present, four press releases relating to the Exchange Fund's data are issued by the HKMA each month. Three of these releases are issued to disseminate monetary data in accordance with the International Monetary Fund's Special Data Dissemination Standard (SDDS). The fourth press release, on the Exchange Fund's Abridged Balance Sheet and Currency Board Account, is made in accordance with the HKMA's policy of maintaining a high level of transparency. For the month of March 2026, the scheduled dates for issuing the press releases are as follows:

March 6

(Issued)

SDDS International Reserves

(Hong Kong's Latest Foreign Currency Reserve Assets Figures)

March 13

(Issued)

SDDS Analytical Accounts of the Central Bank

(Analytical Accounts of the Exchange Fund)

March 31

SDDS Template on International Reserves and

Foreign Currency Liquidity

March 31

Exchange Fund Abridged Balance Sheet and

Currency Board Account

Source: AI-found images