Page 1678 - Week 06 - Tuesday, 3 June 2014
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After taking office the Government ran sustained operating surpluses and built one of the nation’s strongest balance sheets.
This has provided the ability to respond to the economic shocks that we are experiencing and to support the economy.
We are doing this now by making sustained, prudent and transformational investments in services and in infrastructure.
Over the coming years the government has allocated $2.5 billion to the Territory’s infrastructure program, including a record $735 million in the coming 2014-15 fiscal year.
This approach requires the Government to borrow funds.
We will leverage our strong credit rating and our very low net debt to support this community in its time of need.
This borrowing is an investment in the future. Most importantly, it is an investment in the productive capacity of the economy.
Infrastructure projects will not only generate employment and allow for the delivery of better services, but they will create a legacy for our city as we begin the journey of our second century.
The forward estimates have been adjusted to reflect the impact of the Commonwealth budget on the Territory economy and on our own fiscal position.
The direct impacts of the Commonwealth Budget decisions have caused a writedown on the revenue side of $375 million over four years.
The estimated loss of 6,500 Commonwealth jobs from the ACT in the four years to 2016-17 will have a further impact on economic activity and, of course, on the Territory’s own-source revenue.
Therefore, the General Government Sector Headline Net Operating Balance is forecast to be in deficit to the tune of $332.8 million in the coming fiscal year, improving to a deficit of $117 million in 2015-16, returning to balance in 2016-17 and a modest surplus in 2017-18.
The increased deficits in the short term have arisen largely from factors outside the Territory Government’s direct control.
Lower Commonwealth health grants and the reduction in revenue from the land release program due to falling Commonwealth employment have together added more than $80 million to the deficit in 2014-15.
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