ACT Government: Andrew Barr unveils ACT Budget 2022-23

ACT Chief Minister and Treasurer has unveiled the territory’s 2022-23 Budget, while defending his record at the same time. Find out what he said.

The ACT’s 2022-23 Budget has been unveiled by Chief Minister and Treasurer Andrew Barr who said it was about “investing for the future” amid unprecedented population growth in the nation’s capital.

“The fact that our population has grown by nearly 90,000 people demonstrates that people want to live in Canberra,” Mr Barr said on Tuesday.

“That explains why we’ve seen such strong demand for housing, such strong enrolments in our schools, and pressure in our health system.”

Mr Barr said the population boom had led to an increased share of GST, which had improved ACT’s financial position.

“The territory budget I release today sees a fiscal improvement of $800 million over the forward estimates from the budget I released last October,” Mr Barr said.

ACT Chief Minister and Treasurer Andrew Barr says the story of the 2022-23 budget is “investing in the future”. Picture: Julia Kanapathippillai

Mr Barr said Canberrans could expect a decrease in spending in future budgets as the territory’s economic position stabilises, noting Canberra was improving but was not out of the woods yet.

“We’re still dealing with the third year of the pandemic and it still puts pressure on our community,” he said.

“Indications are at this point that we may have passed the peak of this Covid-19 wave.

“We may also have passed the peak of the inflation wave that has hit the Australian economy.

“Here in the ACT there are reasons to believe inflation may have already peaked and may be lower than the rest of the country, principally because we will see falls in electricity prices and water prices, the housing market seems to have peaked and prices are starting to fall and normalise.”

ACT Chief Minister and Treasurer Andrew Barr releases the 2022-23 ACT budget. Picture: Julia Kanapathippillai

The ACT Budget remained in deficit, but the deficit was not as large as expected.

“The deficit in 2021-22 is now estimated to be $580.4 million, $371.1 million lower than forecast at the time of the 2021-22 Budget, and $189.8 million lower than forecast in the 2021-22 Budget Review,” the 2022-23 Budget overview read.

“This improved fiscal position is also expected to continue in the coming years, with deficits now expected to be lower than previously estimated and progressively reducing to $229.4 million in 2025-26.

“Relative to the 2021-22 Budget, all key balance sheet metrics for 2022-23 and outyears – net debt, net financial liabilities and net worth – are also improved.”

Speaking to reporters on Tuesday, Mr Barr said “a surplus is not an objective in of itself”.

“Whether the budget is in surplus or in deficit would largely be a reflection of the economic circumstances at the time,” he said.

“We have been running deficits over this very significant economic shock in order to support the community, to provide support for businesses, for households, and to keep our economy out of recession - which we’ve been successful at doing.

“Governments are not like households … government budgets are much more durable, governments don’t retire, government’s incomes continue to grow.”

ACT Chief Minister and Treasurer Andrew Barr has told reporters a budget surplus is “not an objective in of itself”. Picture: Julia Kanapathippillai

Barr also took the opportunity to hit back against the Canberra Liberals’ criticism of his economic record.

“For the opposition to be suggesting we should be running a surplus now — while every single government in Australia bar Western Australia … are running deficits — is to impose austerity on this community,” he said.

“The onus now, having put this on the table and said ‘this is the defining issue for the territory at the moment’ is for the opposition to come clean on what they want to cut.

“(The Canberra Liberals) are obviously concerned, they should put the cards on the table, and tell the community what it is they will cut.”