Hong Kong, JAN 31: The Hong Kong government said on Saturday that its fiscal deficit fell to HK Dollar 71 billion (USD 9.1 billion) in the nine months ended December 2003 from HK Dollar 75.4 billion in the April-November period.

As the government typically collects most of its tax revenues towards the end of the fiscal year, the deficit tends to decline toward the end of the fiscal year in March.
Fiscal reserves stood at HK Dollar 244.5 billion by December 31, the government said, up from HK Dollar 240 billion at the end of November.
The government has said that its budget deficit could hit a record HK Dollar 78 billion this fiscal year. Many economists, however, now believe it will be less than that as a rebounding economy will help boost revenues, including additional stamp duty from a booming stock market.
Accountants Pricewaterhouse Coopers recently estimated the fiscal 2003-04 deficit would total about HK Dollar 54 billion, down 12.5 per cent from HK$61.7 billion for fiscal 2002-03.
A HK Dollar 54 billion deficit would still be too large and the government needs to cut spending and widen its tax base to bring it down, Pricewaterhouse said.
Financial Secretary Henry Tang has been quoted as saying he sees little room for raising taxes in his budget in March. However, he is expected to announce plans to securitise five government-owned tunnels and a bridge that could amount to several billion Hong Kong dollars, helping relieve some pressure on government finances. The government has raised HK Dollar 15.7 billion this fiscal year through the sale of mortgage loans, which were under various government housing schemes, to the Hong Kong Mortgage Corporation.
It has said it aims to balance the budget by 2008-09 but some economists doubt it can meet that target.
Bureau Report