Structure of Government Accounts

The government controls its finances through a series of fund accounts.
The General Revenue Account is the main account for day-to-day
departmental expenditure and revenue collection. Six other funds exist
mainly to hold investment or to finance capital expenditure and
government loans. They are the Capital Works Reserve Fund, Capital
Investment Fund, Civil Service Pension Reserve Fund, Disaster Relief
Fund, Loan Fund and Land Fund.

The Capital Works Reserve Fund finances the public works programme,
land acquisitions, capital subventions, major systems and equipment
items, and computerisation and the payment of redemption money in
respect of land exchange entitlements. Its income is derived mainly from
land premiums and appropriations from the General Revenue Account.

The Capital Investment Fund finances the government's capital
investments (mainly in statutory public bodies), such as equity injections
in the Airport Authority, the Kowloon-Canton Railway Corporation and
the Mass Transit Railway Corporation, and capital investments in the
Housing Authority. Its income is derived mainly from appropriations from
the General Revenue Account and dividends.

The Civil Service Pension Reserve Fund acts as a reserve to meet
payment of civil service pensions in the unlikely event that the
government cannot meet such liabilities from the General Revenue
Account. Its income is derived mainly from appropriations from the
General Revenue Account and interest on investment.

The Disaster Relief Fund finances grants for humanitarian aid in the event
of disasters outside Hong Kong. Its income is derived mainly from
appropriations from the General Revenue Account and interest on
investment.

The Loan Fund finances loan schemes such as housing loans and student
loans. Its income is derived mainly from appropriations from the General
Revenue Account, loan repayments, and interest on loans.

The Land Fund, established on July 1, 1997, receives and holds all of the
assets, including all accounts receivable, net of expenses, transferred
from the HKSAR Government Land Fund. Its investment is managed by
the Hong Kong Monetary Authority in accordance with the directions of
the Financial Secretary. 

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