Treasurer’s message Our vision for Canberra: for an even better Canberra Where our money goes Where our money comes from Health and education investment for Canberra Economic growth and diversification for Canberra Suburban renewal and better transport for Canberra Enhancing liveability and social inclusion for Canberra Economic outlook Fiscal outlook and strategy
Fiscal outlook & strategy
The 2016-17 Budget demonstrates the Government’s commitment to a fiscal strategy that achieves an operating balance over time, offsetting temporary deficits with surpluses in other periods. Key to this strategy is the responsible management of the Territory’s public finances, balancing sustainable taxation revenues with a high standard of service delivery.
In this budget, the ACT Government is supporting the economy in the short-term, and continuing to deliver appropriate services to the community, while building a strong operating balance over the medium-term. The Headline Net Operating Balance is a deficit of $94.3 million in 2016-17, moving to a surplus of $66 million by 2019-20.
With an eye to the long-term, the ACT Government continues its significant investment in infrastructure, be that in transport, schools or the health sector.
This strong fiscal strategy has given Canberra the flexibility required to deal with events as they happen. The Government has been able to support the ACT economy in the face of savage Commonwealth Government cuts over recent years, and we have been able to deliver a coordinated and compassionate response to the complex issue that is asbestos removal.
But we have not abandoned our fiscal strategy, and we have remained on a consistent path to surplus.
This commitment has meant that the Territory has retained its AAA stable credit rating (as assessed by Standard & Poor’s), one of only three States and Territories in Australia to hold this highest possible rating.
Net debt remains at prudent levels as a share of Gross State Product, and is broadly in line with other AAA rated jurisdictions.
Budget aggregates ($millions)
|Headline net operating balance||-94.3||-35.0||33.3||66.0|
ACT Government expenditure
|Healthy and smart||2,760.1|
|Health and community care||1,553.0|
|Non Government schooling||281.5|
|Vocational education and training||140.1|
|Sport and recreation||48.9|
|Territory and municipal services||308.4|
|Environment, sustainability and land management||322.3|
|Growing the economy||549.2|
|Chief Minister, treasury and revenue management||221.0|
|Planning and regulation||179.4|
|VisitCanberra, venues, events, innovation, trade and investment||68.7|
|Executive, Legislative Assembly, Auditor General and Electoral Commissioner||46.4|
|Arts, culture and heritage||33.8|
|Liveability and opportunity||1,020.8|
|Disability and community services||326.3|
|Justice and community safety||208.9|