A $58.6-billion surplus has been recorded for the 2006-07 financial year, an improvement of $3.5 billion over the revised surplus of $55.1 billion forecast in the 2007-08 Budget.

Expenditure for the year ending March 31 was $229.4 billion, with revenue of $288 billion, resulting in a surplus of $58.6 billion.

The Financial Services & the Treasury Bureau said the improved financial position was mainly because the actual expenditure for the year was $3.6 billion lower than forecast as a result of the strenuous efforts of departments to rein in expenditure and spend only where necessary.

Fiscal reserves stood at $369.3 billion at March 31, up $58.6 billion compared with the balance of $310.7 billion at the same time last year.