Minister Barr: Supporting Canberra, protecting local jobs
- Written by ACT Government
Released 27/08/2020
The ACT’s Economic and Fiscal Update shows how the Government is continuing to use our Budget to protect and create local jobs and ensure Canberra recovers from this once-in-a-century economic downturn.
The ACT is the first Government in Australia to release Budget forecasts across the full four year forward estimates, which outlines the long-term impacts of COVID-19 on the Territory economy.
The magnitude of the current fiscal shock is easily the most significant faced in the Territory’s history. These are a set of forecasts that will be repeated around the nation and the world as governments face rapid write downs in revenue, and increased expenditure to support local communities.
Over the next four years, Goods and Services Tax (GST) revenue for the Territory is forecast to decline significantly, as will our own source revenue as the Government continues to reduce or freeze ACT Government fees and charges.
For 2020-21, the Headline Net Operating Balance is forecast to be in deficit at $909.5 million. Across the forward estimates, the Government is projecting reducing deficits of $670.2 million in 2021-22, $452.0 million in 2022-23 and $399.7 million in 2023-24.
We have benefited from the strong local economy that we built leading into this global health and economic crisis. This position allowed the ACT Government to invest heavily in our community to protect jobs and inject immediate cash into our economy.
It is from this strong foundation that we will drive the ACT’s economic recovery.
The role of every government in Australia will be to drive aggregate demand through increased expenditure. It requires us to be bold and take on more risk. Locally, we will continue to create and shape markets to encourage job creation in emerging industries.
Interest rates are the lowest since Federation, and the message from the Reserve Bank of Australia is that State and Territory Governments should be using our borrowing capacity to build job creating infrastructure.
By investing today, we are avoiding an even bigger loss in economic output and jobs that would damage our economy and community for years to come, which would put an ongoing strain on our budget. It would be to the detriment of young Canberrans and future Canberrans for the Government to not invest now.
Our Jobs and Economic Recovery Plan released today outlines how the Government will work in partnership with local businesses and the community sector to protect and create local jobs now, and over the coming years, as we work towards our target of more than 250,000 jobs in the Territory economy by 2025.
The ACT Government has the right plan to invest in Canberrans and lead our city through these difficult times.
- Statement ends -
Section: Andrew Barr, MLA | Media Releases
