Page 1179 - Week 04 - Thursday, 21 March 1991
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estimated. In general, total ACT revenue will come within budget estimates. This includes payroll tax, financial institutions duty, stamp duties and payments from the Commonwealth. Franchise fees are likely to fall short of the original budget estimates. This is largely due to reduced petrol consumption in response to the price increases recently experienced.
As announced in December 1990, the Government has extended the time for concessional payout of existing rental leases to 30 June 1992. Consequently, land receipts this year will fall below the original estimate by about $15m. As the revenue from commutations was intended to be put aside for expenditures in future years, there will be no detrimental impact on the 1990-91 budget and there will be no need to resort to further borrowings this financial year. Containment of recurrent expenditure levels continues to be a major priority of the Government. The need for some budgetary revisions in health and community services has recently been highlighted, although there are other areas across the budget where revisions, both upwards and downwards, will perhaps be necessary to reflect changing circumstances and priorities over the course of the year. I repeat, Mr Speaker, that there are adjustments upwards and downwards.
The issue of funding for health services has been debated at length in this place. As Treasurer, I have already indicated to members that I have so far only agreed to supplement the hospital budget for national wage case adjustments and the potential revenue shortfall. Further supplementation will depend on the outcome of the review announced by the Minister for Health, but any supplementary provision which might be agreed will be minimal. Potential offsetting reductions elsewhere need to be taken into account in assessing the impact of the health difficulties on the total budget.
Wage and salary increases and an increase in client demand in the areas of community welfare and adult corrective services are putting pressure on the community services program. Treasury is currently examining in detail the reasons for the greater than anticipated level of expenditure. Supplementation will be provided only where this is clearly warranted. I emphasise that under no circumstances will essential welfare and other community services be curtailed. It appears to me to be self-evident that, in times of financial stress such as we are now experiencing nationwide, there will be greater demands on, and expectations in, community welfare services. It is a natural corollary. Some of these expectations and demands could not have been predicted when the budget was proposed nearly a year ago, but they will not be rejected arbitrarily by government simply because we were unable to predict them when the budget was developed.
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