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Tuesday, April 29, 2025

Liberals: ACT Government underspends on major projects

Infrastructure underspend highlights delays of major projects, the Canberra Liberals claim. But the ACT Government says the Canberra Liberals have not read or understood the Budget papers.

Estimates Hearings today revealed that only $845.5 million was spent in 2021/22, despite forecasting a total infrastructure spend of $1.34 billion, Canberra Liberals leader Elizabeth Lee stated.

Ms Lee said the ACT Labor-Greens government continually falls short of its forecast infrastructure spend, despite setting its own targets.

โ€œThis recent underspend comes on the back of $708 million of a promised $913 million being spent on infrastructure in 2020/21, and over $250 million being underspent in 2019/20,โ€ Ms Lee said.

โ€œWhat we see time and time again is this Labor-Greens government not being able to deliver on its promises to Canberrans.

โ€œAn infrastructure underspend of almost half a billion against forecast expenditure is significant, and highlights the continued failure of this Labor-Greens government to deliver projects on time. It is simply not good enough, and this government needs to be held accountable.

โ€œCanberrans are still waiting for the hospital expansion promised over a decade ago, and just last week the Transport Minister [Chris Steel] could not say when light rail will be delivered to Woden.

โ€œWith rising interest rates and inflation impacting households and businesses across the ACT, a shortfall capital spend by the ACT Labor-Greens government has a material impact on aggregate demand in the economy and will be noticed.

โ€œWhether it is aggregate expenditure across the government or capital works spend by Major Projects Canberra, there is clearly a forecasting crisis within the ACT Labor-Greens government,โ€ Ms Lee said.

An ACT Government spokesperson said that the Canberra Liberals had demonstrated their inability to read or understand the Budget papers in Estimates.

 When the 2021-22 Budget was released (6 October 2021), the total forecast expenditure for 2021-22 through the Infrastructure Investment Program for the General Government Sector was $968.599 million.

 In the Budget Review (24 March 2022), this forecast was updated to $929.244 million.

 Total expenditure was $845.534 million, reflecting 89 per cent spend against total funds available for expenditure and 91 per cent spend against the Budget Review forecast.

 โ€œThis was an extraordinary result, particularly given weather conditions throughout the year,โ€ the spokesperson said.

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