Page 1708 - Week 05 - Tuesday, 3 May 2011
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Mr Speaker, the global financial uncertainty continues. Natural disasters around the country will impact markedly on the Commonwealth Budget and bring risks to the ACT economy. However, our strong labour market, relative job security and population growth will continue to support the economy. The prospects for the ACT economy remain positive.
Fiscal Outlook and Budget Objectives
Mr Speaker, the fiscal position of the Territory was significantly impacted by the effects of the global financial crisis.
To make matters worse, we have also seen a drop in our GST revenue due to a reduction in our Commonwealth Grants Commission relativities. This is in part because our needs have been assessed as relatively lower. Our economy has performed relatively better than the other States. But our Budget has suffered as a result.
The Government adopted a robust and flexible plan in 2009-10 to restore the Budget to surplus in 2015-16. Last year, we advanced the target to 2013-14.
The longer term plan means greater discipline, and we have exercised discipline in working towards this target.
It means neither savagely cutting programs and services, nor recklessly spending. It means a measured approach.
The Territory will be returned to surplus as planned. New policy initiatives, necessary to meet the needs of the community, are largely offset by savings.
Savings measures are aimed at reducing administrative costs, both in the resources consumed by staff as well as through reducing duplication and increasing productivity.
An Efficiency Dividend commenced in 2010-11 and continues in this Budget. Applied only to non-frontline services, the Dividend delivers $66.6 million in savings over four years.
The Budget incorporates further savings initiatives to reduce administrative costs by $150.7 million over four years.
Agencies are being asked to reduce expenditure in areas such as travel and accommodation, stationery, consultants and contractors, recruitment and training, electricity and fleet leasing.
Mr Speaker, in 2006-07 in order to achieve whole of government efficiencies, procurement, information technology, finance and human resource management were centralised in the Shared Services agency.
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