The Hong Kong Special Administrative Region (HKSAR) Saturday reported a budget surplus of 14 billion HK dollars (1.8 billion U.S. dollars ) for the 2005 financial year, almost 30 percent higher than earlier expectation.

Expenditure for the year ended March 31, amounted to 233.1 billion HK dollars (30.1 billion U.S. dollars) and revenue to 247.1 billion HK dollars (31.9 billion U.S. dollars).

The market turned active in this year's first quarter, leading to an unexpected yet significant surge in government revenue, the HKSAR Financial Secretary Henry Tang said in a statement issued on Saturday.

The surplus of 14 billion HK dollars represented an improvement of 9.9 billion HK dollars (1.28 billion U.S. dollars) over the 4.1 billion HK dollars (529.71 million U.S. dollars) surplus forecast in the government budget for 2006 financial year, said a government spokesman.

He said the improved financial situation was mainly due to higher collections in stamp duties, salaries tax, profits tax and land premium towards the end of the financial year. These increases in revenue totaled 5.4 billion HK dollars (697.67 million U.S. dollars).

On the other hand, expenditure was 4.5 billion HK dollars (581.39 million U.S. dollars) lower than forecast as a result of the strenuous efforts of departments to rein in expenditure and spend only where necessary.

However, Tang noted that the HKSAR government had no intention to underestimate the figure in the 2006-07 budget announced in February, adding the books have been scrutinized with objectivity and professionalism.

Source: Xinhua