2012-13 ACT Budget

I would like to invite the community to participate in the development of the 2012-13 Budget by sharing views on how the ACT Government’s resources are allocated, where services could be enhanced, and where possible efficiencies could be made.

The 2011-12 Budget has created a strong platform for the delivery of the Government’s Budget Plan. In line with the plan, the Budget expects to deliver a forecast underlying surplus of $1.6 million in 2013-14.

The improved net operating balance is to be achieved through a shift in Government expenditure, from the operating costs of the public service to the delivery of essential services and address the cost of living pressures on Canberra families.

In the ACT, we have a demonstrated record of sound and sustainable economic and financial management, and the fundamentals of our economy remain strong. We have stable and robust growth, low unemployment and high labour participation, and relatively high wages compared to the rest of the nation.

But we are not immune from global factors. Ongoing financial market volatility, however, has created uncertainty and instability across world economies. Consumers continue to be cautious and this weighs on our national household consumption.

We are mindful of some risks to our budget position including slower growth in the GST pool due to the lower household consumption, lower investment returns for both our superannuation investments and the Territory’s cash balances, and higher superannuation liability and expenses.

The Government remains committed to ensuring that core services, community safety and risk management are maintained to the high standard the community expects.

As part of its planning framework, the Government is committed to engaging the community on these issues. Indeed, this is a fundamental component of the budget process.

I encourage you to take this opportunity to participate in the planning of the Territory’s resource and expenditure priorities.

I look forward to working with all ACT residents to return the budget to surplus while maintaining essential services and delivering the infrastructure required for the future needs of our Territory.

Andrew Barr
Treasurer

PS for more information read the Budget consultation paper