The ACT’s Headline Net Operating Balance is forecast to be a deficit of $461.5 million in 2022 23 – a $21.5 million improvement on the 2022-23 Budget estimate, Chief Minister Andrew Barr announced today.
The deficit is forecast to be lower in every year of the forward estimates; over four years, this is a cumulative improvement of $261.3 million.
The 2022-23 Budget Review is the third consecutive budget update to report improvements in the Headline Net Operating Balance across all years, Mr Barr said.
The ACT’s economy was robust, Mr Barr said: it grew 3.9 per cent in 2020–21 and 1.9 per cent in 2021–22.
The improving Budget outlook and health of Territory’s fiscal position was due to nation-leading employment and wage outcomes, he said.
“Having such high labour utilisation has driven strong wage growth, which has been an important shield for many households as externally driven inflation has hit the economy.”
The government will provide additional funding for:
• public health: the COVID-19 response; upgraded and expanded pathology infrastructure; and more specialist cancer nurses;
• vulnerable Canberrans: greater access to crisis accommodation; new perinatal early intervention programs; and expanded services for children with developmental vulnerability;
• child and youth protection: more properties for therapeutic residential care to implement the Next Steps for Our Kids 2022-2030 Strategy;
• public transport: five new light rail vehicles; upgrading the existing light rail fleet to include onboard batteries; upgrading the Woden and Tuggeranong bus depots to support up to 300 battery electric buses;
• sport and recreation: additional grants funding for community-owned facilities; infrastructure expansion, including the Phillip District Oval upgrades;
• environmental sustainability and climate action: an additional $50 million in loans to extend the Sustainable Household Scheme;
• improving road safety and the quality of travel through the Strategic Road Maintenance and Renewal program.
“We are meeting the challenges of a growing population; addressing cost-of-living pressures; continuing to invest in Canberra’s people and places; investigating measures to improve housing access, choice and affordability; and embedding a long-term plan for the delivery of services and infrastructure,” Mr Barr said.
The 2023–24 Budget will be published in June.
