Hong Kong records HK$16.2 billion surplus in first half of fiscal year
Hong Kong's government recorded a HK$16.2 billion surplus for the first six months of the fiscal year to 30 September 2026, mainly due to silver bond issuance. Expenditure and revenue were HK$373.1 billion and HK$271.8 billion respectively, with fiscal reserves at HK$681.7 billion.
Hong Kong's government recorded a surplus of HK$16.2 billion in the first six months of the current fiscal year, covering the period to 30 September 2026, according to official figures released on 30 October 2026. Expenditure and revenue for the period were HK$373.1 billion and HK$271.8 billion respectively. After accounting for HK$131 billion in proceeds from government bond issuance and HK$13.5 billion in principal repayments, the government posted a surplus.
Fiscal reserves stood at HK$681.7 billion as of 30 September 2026. A government spokesman said the surplus was mainly attributable to revenue from the issuance of silver bonds. The spokesman noted that, based on past collection patterns, major revenue items such as salaries tax and profits tax are mostly collected later in the fiscal year.
The consolidated account, which includes the general revenue account and eight funds — the 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 — does not include the Bond Fund. The Bond Fund had a balance of HK$60.369 billion as of 30 September 2026.
Government debt as of 30 September 2026 stood at HK$529.514 billion. This includes green bonds under the government's sustainable bond programme, totalling the equivalent of HK$207.894 billion and denominated in US dollars, euros, renminbi and Hong Kong dollars. Infrastructure bonds under the Infrastructure Bond Programme amounted to HK$158.546 billion, while silver bonds issued under the same programme had a face value of HK$163.074 billion.
Government-guaranteed debt amounted to HK$104.447 billion, covering various guarantee schemes including the SME Credit Guarantee Scheme launched in 2001, the Special Credit Guarantee Scheme from 2008, and more recent programmes for the cross-boundary passenger transport industry, pure electric taxis and the tourism sector.
The fiscal reserves figure of HK$681.7 billion includes a land fund balance of HK$249.845 billion, which has been placed in the Future Fund for long-term investment until 31 December 2030. The Future Fund also includes an additional contribution of HK$4.8 billion, representing one-third of the actual fiscal surplus for the 2015-16 financial year.
