Government Reports HK$16.2 Billion Surplus for First Half of 2026 Fiscal Year

Government's financial results for six months ended September 30, 2026

The Government announced today (October 30) its financial results for the six months ended September 30, 2026.

Expenditure and revenue from April to September 2026 amounted to HK$373.1billion and HK$271.8 billion respectively, resulting in a surplus of HK$16.2 billion after taking into account HK$131 billion received from issuance of Government Bonds and repayment of HK$13.5 billion principal on Government Bonds. The fiscal reserves stood at HK$681.7 billion as at September 30, 2026.

The Central Government Offices. Photo source: reference image

A Government spokesperson said that the surplus of HK$16.2 billion recorded for the period ended September 2026 was mainly due to the proceeds received from issuance of Silver Bonds. Based on past revenue collection pattern, major revenue items including salaries and profits taxes are mostly received towards the end of a financial year.

Detailed figures are shown in Tables 1 and 2.

TABLE 1. CONSOLIDATED ACCOUNT (Note 1)

Month ended September 30, 2026 (HK$ million)

Six months ended September 30, 2026 (HK$ million)

Revenue

22,631.8

271,819.8

Expenditure

(62,117.7)

(373,074.8)

Deficit before issuance and repayment of Government Bonds

(39,485.9)

(101,255.0)

Proceeds received from issuance of Government Bonds

74,829.7

130,981.6

Repayment of Government Bonds*

(192.2)

(13,564.4)

Surplus after issuance and repayment of Government Bonds

35,151.6

16,162.2

Financing

Domestic

Banking Sector (Note 2)

(35,964.2)

(18,670.7)

Non-Banking Sector

812.6

2,508.5

External

-

-

Total

(35,151.6)

(16,162.2)

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

Government Debts as at September 30, 2026 (Note 3)

HK$529,514 million

Debts Guaranteed by Government as at September 30, 2026 (Note 4)

HK$104,447 million

TABLE 2. FISCAL RESERVES

Month ended September 30, 2026 (HK$ million)

Six months ended September 30, 2026 (HK$ million)

Fiscal Reserves at start of period

646,551.2

665,540.6

Consolidated Surplus after issuance and repayment of Government Bonds

35,151.6

16,162.2

Fiscal Reserves at end of period

(Note 5)

681,702.8

681,702.8

The Central Government Offices. Photo source: reference image

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 September 30, 2026, was HK$60,369 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$207,894 million as at September 30, 2026) issued under the Government Sustainable Bond Programme. They were denominated in US dollars (US$9,250 million with maturity from July 2027 to January 2053), euros (7,000 million euros with maturity from November 2026 to November 2041), Renminbi (RMB38,500 million with maturity from November 2026 to July 2054) and Hong Kong dollars (HK$28,000 million with maturity from October 2026 to September 2028);

(ii) the Infrastructure Bonds (equivalent to HK$158,546 million as at September 30, 2026) issued under the Infrastructure Bond Programme. They were denominated in US dollars (US$500 million with maturity in May 2031), Renminbi (RMB59,750 million with maturity from November 2026 to May 2056) and Hong Kong dollars (HK$84,730 million with matrity from November 2026 to May 2056); and

(iii) the Silver Bonds with a nominal value of HK$163,074 million (with maturity in October 2027, October 2028 and September 2029 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 a nominal value of HK$47,100 million and alternative bonds with a nominal value of US$1,000 million (equivalent to HK$7,846 million as at September 30, 2026) issued under the Government Bond Programme with proceeds credited to the Bond Fund. Of these bonds under the Government Bond Programme, bonds with a nominal value of HK$16,600 million will mature within the period from October 2026 to September 2027, and the rest within the period from October 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$249,845 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.

Hong Kong Customs detects case of non-registered precious metals and stones dealer carrying out specified transactions

Hong Kong Customs yesterday (October 29) detected a case involving a local company that conducted transactions of gold and silver valued at over HK$120,000, without registration under the Dealers in Precious Metals and Stones Regulatory Regime. An investigation is ongoing.

According to the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615), unless exempted, any person who is seeking to carry on a business of dealing in precious metals and stones and engage in any transaction(s) (whether making or receiving a payment) with a total value at or above HK$120,000 in Hong Kong is required to register with Hong Kong Customs. Any dealer, other than a registrant, who claims to be a registrant, claims to be authorised to carry out, or carries out any cash or non-cash transaction(s) with a total value at or above HK$120,000 is liable to a maximum fine of HK$100,000 and imprisonment for six months upon conviction.

Customs reminds dealers in precious metals and stones that they must obtain the relevant registration before they can carry out any cash or non-cash transaction(s) with a total value at or above HK$120,000.

For the forms, procedures and guidelines to submit applications for registration, please visit the website for Dealers in Precious Metals and Stones Registration System (www.drs.customs.gov.hk) or Customs' webpage (www.customs.gov.hk/en/service-enforcement-information/anti-money-laundering/supervision-of-dealers-in-precious-metals-and-ston/index.html).

Members of the public may report any suspected transactions involving precious metals and stones with a total value at or above HK$120,000 conducted without the required registration 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).

Source: AI-found images