THE Territory has recorded a budget surplus of $50 million in 2011-2012, according to a June quarter financial report issued today.

Treasurer Andrew Barr presented the June Quarter 2012 Consolidated Financial Report for the ACT to the Legislative Assembly today, which showed the ACT Budget position has improved by $175.9 million to a surplus of $50.4 million, compared to an estimated deficit of $125.5 million.

Mr Barr says the surplus for 2011-12 is “good news for the ACT economy.”

“It demonstrates the strength of the ACT economy and the Government’s responsible fiscal management [and] demonstrates the Government’s focus on making prudent administrative efficiencies, and re-prioritising funding to frontline services,” he said.

“The 2011-12 surplus also ensured the ACT entered the 2012-13 financial year in a stronger fiscal position than expected.”

Mr Barr says total revenue was boosted by $112.4 million due to an increase in dividend and income tax equivalents revenue.

“This is largely a result of additional tax equivalents recognised from Actew Corporation due to a change in the Australian Tax Office treatment of unassessed revenues for tax purposes,” he said.

“This change will not impact on customer billing, the cost of energy or the cash returns to government.”

He added the ACT received a number of advance payments from the Commonwealth in the areas of health, non-government schools and early childhood centres.

Meanwhile, total expenses decreased by $69.8 million compared to the estimated outcome, with the $10.4 million saving in the Treasurer’s Advance strengthening the result.

Mr Barr said other factors to the decrease in expenses included “lower agency operational expenditure associated with the timing of project and program delivery” and it is expected these funds will be rolled over into 2012-13 with a decrease in other expenses due to “end of year actuarial assumptions which decreased the value of insurance claims.”