The ACT’s economic recovery is continuing to progress with surging employment, strong consumption and an improving budget position for the Territory.
The mid-year Budget Review released today builds on our Economic Recovery Plan to support the economy by investing in major infrastructure projects across our public health and education systems. Not only do these investments create local jobs during their construction, it will also allow us to hire more teachers, nurses and doctors to deliver the services our growing city will need into the future.
With an additional $185.8 million invested in infrastructure in the mid-year Budget Review, the Government is delivering the Territory’s largest ever program. The investments in this Budget Review, such as the funding to commission the Canberra Hospital expansion and local school upgrades, increase the total value of the Territory infrastructure investment program to $6.6 billion over five years. These investments contribute to the Government’s 250,000 local jobs by 2025 target.
The economic recovery is having a positive impact on the ACT’s fiscal outlook. The improvement in the Headline Net Operating Balance since the October 2020-21 Budget is $475 million over four years to 2024-25. The path back to budget balance will continue to be a key priority for the Government over the medium term.
Total revenues have improved by $855.8 million over the four years to 2024-25, primarily driven by an increase in the national GST pool and own-source revenue – demonstrating a significant recovery in economic activity.
Total expenses have also increased by $375.8 million over four years to 2024-25, driven by the need for ongoing funding to support the ACT’s pandemic response. The Budget Review makes a $105.3 million investment in ongoing public health activities as our as we prepare for an anticipated increase in COVID-19 cases through winter.
The pandemic isn’t over and the Government will continue to support our unprecedented public health response as well as our economic recovery plan.
We are cautiously optimistic about the ACTs economic prospects in the coming years and are putting in place the plans and programs that will take advantage of the economic opportunities of the future.
The 2021-22 Budget Review is another essential step in delivering on our plan for the future as Canberra emerges stronger, together.
