THE ACT government’s borrowings have more than doubled from $3.4 billion in 2018 to $8.3 billion in 2021, a report from the ACT Audit Office has found.

ACT Auditor-General Michael Harris presented a report on the financial results and audit findings from the 2020-21 financial audits to the Speaker for tabling in the ACT Legislative Assembly this week.

The report found the significant increase in borrowing was mainly a result of funding for capital expenditure and to assist with the ACT government’s COVID-19 pandemic response.

The territory’s total borrowings are projected to increase further from $8.3 billion in 2021 to $13.8 billion in 2025, the report indicated.

Mr Harris said the report provides the community with information about the territory’s financial position.

“The financial results of the ACT Government and agencies provide useful information to the community about the state of the Territory’s finances and the financial impact of government decisions over time,” Mr Harris said.

The report also found that the territory’s net operating balance deficit of $658 million in 2020-21 was lower than the budgeted deficit of $879 million, mainly as a result of higher than expected commonwealth grants from GST.

The territory achieved an operating surplus of $123 million, compared to a budgeted deficit of $409 million, largely due to higher than expected gains on investments and revenue from residential land sales, the report indicated.

It also revealed that 48 audit findings were reported to agencies in 2020-21, half of which related to internal control deficiencies presenting a risk of error or fraud.

The audit report suggested that agencies need to give attention to addressing previously reported audit findings in a “timely manner”, with 40 percent of the previously reported audit findings found to be unresolved or partially resolved in 2020-21.