Massive Deficit Still On Cards As ACT Labor Fails To Deliver

The March Quarter 2013 Consolidated Financial Reports tabled in the Assembly today shows that the ACT Budget is still on track for a $362 million deficit this financial year.

The combined efforts of the Gillard-Swan Federal Labor Government and the ACT’s Gallagher-Barr Labor Government have contributed to keeping the ACT Budget on track for a near record deficit, according to Shadow Treasurer, Brendan Smyth.

“What the report shows is that the actions of the Federal Government, through their reduction in public service numbers and the early calling of the Federal election, has had an real negative impact on the ACT, with the ACT Labor Government on track for a near record deficit,” Mr Smyth said.

“At the same time our superannuation liability, our largest single liability, has increased to a record $7.765 billion, making up 67% of our total liabilities.

“Net Debt has also deteriorated by $593 million since June 2012, due to additional borrowings undertaken by the Government.

“All this comes at a time when taxes continue to fall short. The Government’s much vaunted Lease Variation Charge, which increases pressure on housing affordability and attacks redevelopment in the inner city, brought in $7.5 million less than originally budgeted.

“It is time Andrew Barr told the people of the ACT how he’s going to dig the budget and the economy out of the hole that he, and Federal Labor, have created for the ACT,” Mr Smyth concluded.