Page 3023 - Week 09 - Thursday, 13 October 2022
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in Australia for a decade. We are focusing on addressing cost-of-living pressures, continuing to invest in Canberra’s people and places and embedding a long-term plan for the delivery of services and infrastructure.
There are risks in the short, medium and long term that our economy will face. At this point in time we have the strongest labour market in Australia. We have, as I have mentioned, the fastest-growing population, and we continue to see very significant supply-side pressure within our economy.
This budget aims to improve the territory’s overall wellbeing and to drive economic growth and jobs into the future. We are focused on ensuring that we have the public health facilities that can meet the needs of our growing population and that we are investing in our education system. There has been some remarkable Australia-leading growth in educational attainment in our jurisdiction that I will touch upon shortly. We are boosting our investment in protecting our natural environment and programs to reduce our carbon emissions and reliance on fossil fuels. We are investing in infrastructure, the largest-ever infrastructure program in the territory’s history.
We recognise there are supply chain and labour constraints, and that is why we are refreshing our infrastructure plan. We are working with the commonwealth on shared priorities and focusing on a diversified program of asset acquisition, construction and of course significant investment in ICT projects.
There are pressures around cost of living at the moment, particularly given the high rate of inflation and increases in interest rates, as the Reserve Bank normalises the cash rate. There is an ongoing need to secure more affordable housing for Canberrans. The budget includes measures designed to alleviate these pressures, to provide real and accessible housing choices, and to enhance wellbeing across the territory.
On fiscal policy, the government has balanced the need to continue to improve our fiscal position with the need to invest in services. The path back to a balanced budget is a path we have trodden before in recovering from significant economic shocks. It is a path we will tread again. But I want to highlight to the Assembly—because it was completely glossed over by some contributors—that the strength of our economic recovery has led to a significantly better than expected fiscal position.
In the fiscal year just past, the budget deficit shrank by 40 per cent—a $370 million improvement over what was forecast in the 2020-21 budget. This improved fiscal position is expected to continue in the coming years. This budget outlines a deficit that is lower than previously estimated and progressively reducing to a little over $200 million in fiscal 2025.
Relative to last year’s budget, all key balance sheet metrics for 2022-23 and the outyears—net debt, net financial liabilities and net worth—have all improved. Net debt is $350 million lower than the 2021 budget estimate. Net financial liabilities are $1.25 billion lower than then the 2021 budget estimate. The territory’s net worth is $3.6 billion higher than the 2021 budget, with net worth approaching $19 billion.
Throughout our budget deliberations we are using our wellbeing framework to help us measure progress and to assist the government to make better decisions on
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