EMPLOYMENT growth and major infrastructure to “transform” Canberra sit at the forefront of the ACT Government’s Budget for 2013-14.

Of his second Budget, Treasurer Andrew Barr announced a deficit of $340m for 2012-13 and forecast a deficit of $253.6m for 2013-14, an increase on last year’s prediction of $130.2m.

The Budget is not predicted to return to surplus until 2015-16, when a pre-election surplus of $29.3m is expected.

“During the financial boom, the Government put aside money for a rainy day, and today is that rainy day,” Barr told a packed media room at the Assembly.

“There’s no doubt we face a difficult couple of years. This is a solid, reliable Budget that will set up Canberra’s future.”

Chief Minister Katy Gallagher agreed the Budget was put together in “really challenging times”.

“There are funding pressures across government and reductions in Commonwealth spending which are certainly having an impact on the broader economy,” she said.

“These challenges put the responsibility fairly and squarely on us to continue to reform our Budget for the longer term. Overall the Budget is measured and responsible, without the need to slash and burn – instead, focusing on key priority areas.”

The top priority continued to be health, with the Government matching last year’s record level investment of $1.3b.

The Government will spend $5m in 2013-14 to begin work on a separate paediatric emergency area at the Canberra Hospital, while a total of $45.5m will be spent on 31 additional beds across Canberra and Calvary public hospitals in an effort to slash emergency department waiting times.

An extra $33m will go towards elective surgery to meet the increasing demand for elective surgery procedures, with a target of 11,000 operations in 2013-14.

As ACT unemployment rates lift, the Budget will have a “sharp focus” on increasing employment opportunities for both private and public sectors, said Barr.

“Through the measures we’ve announced, we can create new job opportunities and put forward projects that will create jobs, such as The City to Lake, to the construction phase and ongoing to support the economy,” he said.

“Commonwealth governments will certainly be contracting in spending, so it’s our hope we can keep this economy growing, and together with the private sector we can make important investments in this economy without cuts to the public service.

“We can’t save Canberra from Tony Abbott, but we can help the community through this difficult period.”

The Budget continued its implementation of the ACT business development strategy, focusing on small to medium enterprises and “broadening the role of the private sector by providing targeted funding and support to local businesses and helping to attract new business and investment,” according to Barr.

In addition, the government will cut insurance and payroll taxes for small and medium-sized businesses, although rates on commercial properties will increase by 20 per cent.

In a bid to boost the construction sector after a reduction in building approvals, the first home owner grant will increase to $12,500, up from $7000, available only to buyers purchasing new homes or homes they plan to “substantially renovate”.

In transport, $5m will go towards the preliminary design and delivery of a strategy for Capital Metro light rail route between Gungahlin and the City via Flemington Road and $1.4m will go towards progressing the light rail master plan.

Ms Gallagher said despite the grim fiscal outlook, the light-rail was an “important long-term investment.”

“It wasn’t like it was this or nothing, there were other options there but this proved to be the one that could save us in the long run,” she said.

“This will not only expand, improve and modernise Canberra’s transport as a whole, but transform the city.”

The Government will also undertake a review of ACTION buses to determine whether it is efficiently providing high-quality services.

A strong investment in higher education was announced, with more than $2m to go towards “Study Canberra”, a plan to grow the tertiary education sector, increase student numbers and increase student capacity over the next four years.

The Government’s recent partnership with the Commonwealth Government to implement the National Education Reform Agreement (Gonski) will see a total increase of $190m in funding to all ACT schools by 2019.

In sport, the Government will spend $4.1m to increase Manuka Oval’s capacity and enhance its spectator and media infrastructure, in addition to the design of a facility upgrade at Greenway Oval.

Funding will also include upgrades to netball facilities across the Territory and the Lyneham Sports Precinct.

Arts investments included funding for the Ainslie Arts Centre, the Gorman House Arts Centre and the Kingston Arts Precinct.