Page 1707 - Week 05 - Tuesday, 3 May 2011
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Targeted, recurrent expenditure with a net impact of $266.5 million over four years is made in this Budget for sensible and needed investments in healthcare, schools, community safety, and municipal and community services.
The Budget invests in measures to deliver affordable housing, addresses cost of living pressures for those most in need and continues to respond to the challenges of climate change.
Positioning Canberra for our coming of age, the Budget supports our preparations for the celebration of Canberra’s Centenary, the need for public transport expansion and continued urban renewal to meet the demands of our growing city.
Mr Speaker, since the last Budget, revenues have improved due to the strength of economic activity in the Territory. The Budget returns to surplus in 2013-14 as forecast last year and two years ahead of the original recovery plan.
We have maintained fiscal restraint. Expenditure on new initiatives is largely supported by savings. We remain focused on prioritising essential service delivery, building our frontline services and tightening areas where efficiencies can realistically be achieved.
This Government has consistently rejected a slash and burn approach to our Budget recovery. Whilst our focus remains on expenditure restraint, savings do need to be realised to return our Budget back to surplus. These are never easy tasks.
In 2011-12, we are estimating expenditure of around $825 million on new works and works in progress. In doing so we provide critical support for local jobs, provide long term certainty for the private sector and at the same time deliver for our community high quality public infrastructure for the future.
There are no new taxes in this Budget. In fact, tax subsidies are provided to support transition through microeconomic reform.
Economic Outlook
Mr Speaker, compared with other jurisdictions, the Territory’s economy performed very well this year, recording some of the highest growth rates through the year.
The Territory’s economy is significantly influenced by the decisions and actions of the Commonwealth Government. There is no doubt the austerity of the upcoming Federal Budget will impact on our economy. State Final Demand growth is forecast to moderate to 1¾ per cent.
The labour market is also well positioned for 2011-12. Employment is forecast to grow by 2½ per cent in 2010-11. We have the second lowest unemployment rate in the country at 3.2 per cent, and the second highest labour force participation rate at over 73 per cent. Employment growth in 2011-12 is forecast to moderate to ¾ per cent consistent with the moderation in the overall economic growth.
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