A Budget for Our Growing City

In May I delivered my second Budget as ACT Treasurer. It has been a challenging Budget to put together following the Global Financial Crisis. Despite the recovery in our economy, the impact of the economic slowdown on our Budget will take longer to recover. Last year we took the right decision not to respond hastily by slashing funding and services, and this decision has paid off. The economic slowdown has not been as severe as predicted when the 2009-10 Budget was prepared and consequently there has been improvement from previous projections. However, we have had to grapple with the Commonwealth Grants Commission's decision to reduce the ACT's share of GST revenue which has placed some pressure on our Budget. Nonetheless, the ACT Labor Government is committed to continuing to invest in those services important to our community and delivering a strong and targeted capital investment program to increase the productive capacity of our economy and prepare our city for the future.

Through this Budget we are responding to the needs of our growing city and continuing to invest in essential services and valuable community infrastructure. We are delivering better schools, better health care, a vision for transport, and quality community assets that place our city on a sustainable footing for the future.

Health remains a key priority for the Government with an additional $177 million over four years in recurrent funding to health services to respond to growing demands in areas such as elective surgery, acute and intensive care, cancer services, mental health, and obstetrics and gynaecology. There is also an additional $59 million for eduction bringing the total education budget to a record $502 million, as well as new funding of $97 million for a comprehensive transport program for Canberra. We are delivering a strong residential land release program, enhanced municipal services and improved community safety while continuing our support for the most vulnerable in our community and promoting positive action on climate change.

Although the Budget remains in deficit over the forward estimates, we are now targeting a balanced budget by 2013-14 - two years earlier than previously projected. This is a responsible Budget that continues to invest where our community needs it most, and continues the Government's excellent record of strong financial management.

For more information on the 2010-11 Budget, visit the Treasury website.

Contact my office:

Phone: 6205 0840 - Email: gallagher@act.gov.au - Fax: 6205 3030