Page 3061 - Week 11 - Tuesday, 11 September 1990
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decisions, the ACT Government's total debt at 30 June 1990 was $580.8m.
The Government is determined to institute prudent and cautious economic management. It has budgeted for this year's principal and interest payments and, through the use of sinking funds, it is ensuring that the principal is paid off over the estimated life of the assets funded by borrowings. Servicing the ACT's 1990-91 debt will cost the budget $22.4m in interest and $7.8m in principal repayments.
In conclusion, I outlined a budget strategy in March which set the economic and financial directions for the future of the ACT community. In accordance with that strategy, this budget sets a climate for private sector growth by increasing public sector efficiency and through the changes resulting from micro-economic reform. It is balanced. It minimises reliance on borrowings. It also takes the first steps towards making better use of ACT assets. We have taken strategic decisions in health, schools and TAFE - the areas of most significant overfunding - to accomplish the move to State-like funding over the next few years.
The decisions we have taken have a major effect on the structure of the ACT budget. Leaving aside the hospital redevelopment, we have made recurrent expenditure reductions which will save $15m this year, increasing to $27.5m by 1992-93. Adding the full year effect of restructuring, the measures in this budget will save $40m. We have introduced revenue measures which will achieve $36m in 1990-91 and $46m in every full year thereafter. The introduction of new policies will add $5m in 1990-91 and in future years.
The total change we are achieving in the recurrent budget bottom line is $50m this year and $81m in a full year. Our new borrowings are 4.5 per cent lower than for last year. We have provided $20m towards the overfunding position that the Territory has inherited. We are using our $20m cash this year to cut future years' spending. We are in the process of establishing an efficient administrative structure. We have kept ACT taxes at reasonable levels, at or below the New South Wales levels. We are establishing the groundwork for continuing responsible financial management. I commend the Bill to the Assembly and I present the explanatory notes to the Bill and the following papers:
Budget Speech 1990-91 (Budget paper No. 1).
Budget Overview 1990-91 (Budget paper No. 2).
Capital Works Program 1990-91 - (Budget paper No. 6).
Environment Budget Statement 1990-91 (Supplementary budget information paper No. 2).
Financial Relations between the Commonwealth and ACT 1990-91 (Budget paper No. 7).
Municipal Budget 1990-91 (Budget paper No. 8).
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