Minister Barr: ACT Budget: Over $800m improvement in Territory fiscal position
- Written by ACT Government
Released 02/08/2022
Since the 2021-22 Budget delivered in October 2021, the ACT Budget position has improved by more than $800 million over four years.
The deficit in the previous fiscal year (2021-22) is now estimated to be $580.4 million, $371.1 million lower than forecast at the time of the 2021-22 Budget.
This improved fiscal position is also expected to continue in the coming years, with deficits now expected to be lower than previously estimated and progressively reducing to $229.4 million in 2025-26.
Relative to the 2021-22 Budget, all key balance sheet metrics for 2022-23 and out-years – net debt, net financial liabilities and net worth – are also improved. Net debt is expected to be $6.525 billion in 2022-23, $351 million lower than the 2021-22 Budget estimate of $6.876 billion. Net financial liabilities are expected to be $11.416 billion in 2022-23, $1.259 billion lower than the 2021-22 Budget estimate of $12.675 billion. The Territory’s net worth in 2022-23 is expected to be $18.992 billion, $3.587 billion higher than the 2021-22 Budget estimate of $15.405 billion.
As we continue the Budget repair task, the Government is investing in our rapidly growing city – delivering for Canberrans now and well into the future. Our economy will generate more jobs than we have ever had before, supporting a city where more people want to live – growing faster than anywhere else in the country.
Health is the largest area of expenditure in the Territory Budget, at $2.2 billion, it accounts for nearly a third of all ACT Government expenditure. Like every state and territory around Australia, there are pressures across our hospitals and health facilities. As we have done throughout the pandemic, the Government is increasing resources across our health system so that our doctors, nurses, midwives and allied health care workers can deliver high quality, free public health care. The Budget includes a boost in services across the health portfolio, with over $390 million in new investment.
Education is the second largest area of expenditure at $1.6 billion. Through the Budget, we are promoting new opportunities in the knowledge economy, and supporting the creation of new jobs by diversifying our economy and encouraging skilled migration. This Budget sees an additional $240 million invested in education and lifelong learning.
We are delivering a comprehensive package to tackle housing affordability and supply. From targeted stamp duty cuts, through to the construction of hundreds of new public housing dwellings – we are taking the steps necessary to ensure more Canberrans have access to safe and secure homes. This Budget invests another $87 million into the Growing and Renewing Public Housing program to expand that program by a further 140 dwellings, as well as an additional investment in public housing maintenance and repairs.
We are the renewable energy capital of Australia. Canberrans are proud of our justified reputation as leading the nation on climate action. This Budget further strengthens our reputation, with more than $100 million in new investments as we transition to a zero emissions future.
We are delivering infrastructure that is built for Canberra. This Budget sets out a $7 billion infrastructure program over five years – a balanced and sequenced program of large and small projects to provide for the needs of a growing city and create thousands of jobs.
The Budget Review released in March this year stressed cautious optimism about Canberra’s economic outlook and the Budget bottom line. While we are still in an uncertain economic environment and the need for caution remains, Canberra’s future – our recovery from the pandemic, and our growth – presents many exciting opportunities. The Government recognises these opportunities and through this Budget continues to invest in our city and its future potential.
- Statement ends -
Andrew Barr, MLA | Media Releases
