ACT budget still $363m in the red

Treasurer Andrew Barr

THE ACT Government’s mid-year budget review shows the deficit is still more than $360 million despite a slight improvement.

The half yearly budget review, tabled by Treasurer Andrew Barr, shows there has been an $18 million improvement in the deficit since the pre-election budget review in September.

The improved budget situation is mainly due to increased GST revenues.

But the deficit is still $363 million, $45 million more than the original budget estimate.

Mr Barr says revenue has softened across forward estimates, mainly because of revisions to the land release program to reflect slower than expected land sales.

“The softening in revenue is also due to revisions to conveyancing and waste fees, higher depreciation for education infrastructure, and lower returns from ACTEW and ACTTAB,” he says.

“With revenue softening it is important that the Government continues to be disciplined and demonstrate expenditure restraint, in order to ensure we are well placed to meet future challenges. Reflecting this commitment, reductions in the Treasurer’s Advance and government expenditure have been included in the Budget Review.”

Mr Barr says the budget is on track to return to surplus in the 2015-2016 financial year.