ANDREW Barr says the latest Budget Review shows that the budget is almost exactly where he forecast it would be aside from the unforeseen impact of Mr Fluffy.

“We’re doing the right thing for all Canberrans by creating an enduring solution to the legacy of loose fill asbestos. This fair and measured scheme has a significant short-term impact on the bottom line, but it has not changed our AAA stable credit rating,” Andrew said.

“The Headline Net Operating Balance in 2014-15 is estimated to be in deficit by $385.9 million before the impact of Mr Fluffy, or $770.5 million after this expense is factored in. In 2015-16, the deficit is estimated to be $108m excluding the cost of asbestos remediation and $249.8m after it is included. The budget is expected to return to balance in 2016-17, consistent with the forecast in the 2014-15 Budget.

“Outside of the asbestos eradication scheme, the Budget Review shows that spending has remained steady despite external pressures, and our approach has helped ensure that the short to medium-term outlook for the Territory’s economy remains broadly consistent with that expected in the 2014-15 budget. As anticipated at the time of the 2014-15 budget, residential construction has begun to rebound, while commercial construction is showing signs of improvement.

“Whilst the Mr Fluffy legacy has impacted on the Territory’s finances across the next four financial years, the Government is pushing ahead with our agenda of job creation and urban renewal. This is the way we can provide certainty to families, ensuring our economy can continue to grow and Canberra is set up for a strong and prosperous future.”

To access the Budget Review, visit http://apps.treasury.act.gov.au/publications